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ARCH INSURANCE COMPANY

(A Missouri Corporation)

Home Office Address: Administrative Address: 2345 Grand Blvd., Suite 900 300 Plaza Three, 3rd Floor Kansas City, MO 64108 Jersey City, NJ 07311 Tel: (866) 413-5550

AIRCRAFT HULL AND LIABILITY POLICY

DECLARATIONS

The Declarations, together with your Policy and attached endorsements, comprise your complete Insurance Policy.

PLEASE READ THE ENTIRE POLICY CAREFULLY

1. Producer Name and Address:

2. Policy Number: Renewal of Policy: Renewal of Policy:

3. Named Insured: Federal ID:

Mailing Address:

4. Policy Period: From: To:

12:01 A.M. Local Standard Time at the address shown above.

5. The Named Insured is classified as: Individual Partnership Corporation Joint Venture LLC LLP Other:

6. Designated Aircraft Purpose(s) as defined in the Policy:

Pleasure and Business Charter/Taxi Commercial As Endorsed Hereon

7. Pilots:

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8. Aircraft Insured Under this Policy and Aircraft Physical Damage Coverage:

Subject to the Aircraft Insurance Requirements set forth in this Policy, the aircraft(s) described below is covered, and the coverage that applies to each insured aircraft(s) is also identified below. However, Aircraft Physical Damage Coverage applies to such aircraft only if an Agreed Value is shown below for such aircraft. You are insured up to the Agreed Value shown. The Agreed Value may be altered by this Policy or any endorsements.

Crew Passenger $ $ $ $

$ $ $ $

$ $ $ $

$ $ $ $

$ $ $ $

*Or Foreign Equivalent ** The amount agreed between you and us, in writing, prior to coverage of the Aircraft.

***PHYSICAL DAMAGE Coverage Identifier

Coverage A. Ground and In Flight

Coverage B. Not In Flight

Coverage C. Not In Motion

9. Limits of Insurance for Bodily Injury and Property Damage Liability Coverage:

Coverage D. Bodily Injury Liability Excluding Passengers $ $ $

Coverage E. Property Damage Liability XXXX $ $

Coverage F. Passenger Bodily Injury Liability $ $ $

Coverage G. Single Limit Bodily Injury and Property Damage Liability--

XXXX $ $

Including Passengers with Passenger Liability Limited internally to: $

XXXX

XXXX

DESCRIPTION OF AIRCRAFT AND PHYSICAL DAMAGE COVERAGE

DEDUCTIBLES

Year MAKE AND

MODEL

F.A.A CERT. NO.*

SEATS AGREED Value**

PHYSICAL DAMAGE

COV.***

PHYSICAL DAMAGE PREMIUMS

NOT IN MOTION

IN MOTION INGESTION OR MOORING

BODILY INJURY AND PROPERTY DAMAGE COVERAGES LIMITS OF LIABILITY

EACH PERSON

EACH OCCURRENCE

LIABILITY PREMIUMS

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10. Limits of Insurance for Medical Payments Coverage:

MEDICAL PAYMENTS COVERAGE LIMITS OF LIABILITY

EACH

PERSON

EACH

OCCURENCE

MED PAY

PREMIUMS

Coverage H. Medical Payments- including Crew $

11. Premium: Premium: $ Endorsement Premium: $ Terrorism Coverage Premium (TRIA): $ Total Premium: $

12. This Policy contains the following endorsements: Please see the attached Schedule of Endorsements to the Policy.

13. Notices to Insurer:

Notice of Loss, Damage, Occurrence, Claim(s) or Potential Claim(s) to be sent to:

York Risk Services Group, Inc. Attn: OSC

P.O. Box 183188 Columbus, OH 43218-3188

Phone: 877 371-9774 Fax: 800-393-8104

E-mail: 7356ANSA@yorkrsg.com

All Other Notices to be Sent To:

Arch Insurance Company 330 Post Road, Suite 200

Darien, CT 06820

14. Additional Optional Coverages Applicable:

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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

TERRITORIAL AMENDMENT ENDORSEMENT

It is agreed that this Policy is amended as follows:

Condition 9. Coverage Territory is deleted and replaced by the following:

9. Coverage Territory

You are covered during the Policy Period up to the limits shown in the Declarations with respect to your Aircraft provided it is within the United States of America, its territories and possessions, Canada, the Bahamas, Turks and Caicos Islands, Mexico,

or while enroute between these places.

This policy does not apply, and no coverage is provided while your Aircraft is within the territorial boundaries of Haiti and Cuba, whether In Flight or on the ground.

All other terms and conditions of this Policy remain unchanged.

Endorsement Number:

Policy Number:

Named Insured:

This endorsement is effective on the inception date of this Policy unless otherwise stated herein:

Endorsement Effective Date:

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AIRCRAFT HULL AND LIABILITY POLICY

This AIRCRAFT HULL AND LIABILITY POLICY ("Policy") can provide you with coverage to meet your aircraft insurance needs. The coverage you have selected is specified in the Declarations and in the Endorsements, if any, which are attached to this Policy. In consideration for your payment of the premium and in reliance upon the statements and representations in the Declarations, which this Policy incorporates, we agree to provide you with the insurance defined by all the terms of this Policy, including the applicable Limits of Liability.

Various provisions in this Policy restrict coverage. Read the entire Policy carefully to determine rights, duties and what is and is not covered.

Throughout this Policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance.

Other words and phrases that appear in bold typeface have special meaning and are defined in SECTION VII – DEFINITIONS.

AIRCRAFT INSURANCE REQUIREMENTS

To be insured under this Policy:

A. Your Aircraft must be used for the purpose shown on the Declarations. If your Aircraft is used for any other purpose, we will not provide any coverage under this Policy;

B. The Aircraft must be registered with the Federal Aviation Administration ("FAA") and have a valid and effective Airworthiness Certificate in the Standard category issued by the FAA (or foreign equivalent). Your Aircraft must also have been maintained as required under applicable Federal Aviation Regulations (or foreign equivalent). However, this shall not apply while the Aircraft is operated on a reposition, ferry or test flight, provided a special permit or waiver has been granted by a government aviation authority for such flights and such flights are for the sole purpose of reinstatement or renewal of the Airworthiness Certificate;

C. The Aircraft must only be operated by a pilot or pilots described in the Declarations. However, this requirement shall not apply while the Aircraft is under the care, custody or control of a Federal Aviation Administration (FAA) approved repair station for the purpose of maintenance, repair or test flights;

D. You must own the Aircraft, wholly or in part, or you must lease the Aircraft under a written lease of at least one year's duration or operate the Aircraft under a Management Agreement; and

E. The pilot(s) who operate the Aircraft In Flight must meet the pilot warranty requirements described in the Declarations.

SECTION I - AIRCRAFT PHYSICAL DAMAGE COVERAGE

Under SECTION I - AIRCRAFT PHYSICAL DAMAGE COVERAGE, there are three Coverage options. These Coverage options are described below. The Coverage option which applies to each Aircraft is indicated on the Declarations and is subject the Limits of Insurance and the specified Deductible set forth in the Declarations.

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A. COVERAGE

1. Coverage A - Ground and In Flight

We will pay for direct physical loss of or damage to Aircraft, including disappearance of the Aircraft, caused by or resulting from any Covered Cause of Loss.

2. Coverage B - Not In Flight

We will pay for direct physical loss of or damage to Aircraft sustained while the Aircraft is Not In Flight caused by or resulting from any Covered Cause of Loss which is not the result of fire or explosion following crash or collision while the Aircraft was In Flight.

3. Coverage C - Not In Motion

We will pay for direct physical loss of or damage to Aircraft sustained while the Aircraft is Not In Motion and caused by or resulting from any Covered Cause of Loss which is not the result of fire or explosion following crash or collision while the Aircraft was In Motion.

B. COVERED CAUSE OF LOSS

Covered Cause of Loss means risks of direct physical loss or damage unless the loss or damage is excluded in SECTION I, Paragraph C. EXCLUSIONS.

C. EXCLUSIONS

In addition to the exclusions set forth in SECTION V - COMMON POLICY EXCLUSIONS, we will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss or damage.

1. Loss of or damage to the tires on your Aircraft unless the loss or damage to the tires is caused by fire, theft, windstorm, vandalism, or malicious mischief or unless the loss or damage to the tires is the direct result of other physical damage covered by this Policy;

2. Loss or damage which is due and confined to:

a. Wear, tear, deterioration, or freezing;

b. Any electrical breakdown, malfunction or failure of any electronic component(s), accessory(ies), or electrically powered equipment; or

c. Any mechanical, hydraulic, pneumatic, or structural breakdown, malfunction or failure;

unless any such loss or damage in a., b. and c. is the direct result of other physical damage covered by this Policy.

Loss or damage resulting from electrical breakdown, malfunction or failure of an electrical component(s), accessory(ies), or electrically powered equipment is considered breakdown, malfunction or failure of the entire electrical system containing such electronic component(s), accessory(ies), or electrically powered equipment.

Loss or damage resulting from the breakdown, failure or malfunction of any engine component, accessory or part is considered mechanical breakdown, malfunction or failure of the entire engine.

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3. Loss of or damage to electronic or electronically driven equipment caused by and confined to power surge, failure or malfunction.

4. Loss of or damage to your Aircraft's engine(s) or auxiliary power unit(s) caused by heat that results from the operation, attempted operation, or shutdown of the engine(s) or auxiliary power unit(s).

5. Voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense. This exclusion does not apply to loss of the Aircraft caused when a renter pilot, renting such Aircraft pursuant to a rental agreement, converts, embezzles or secretes the Aircraft while it is in the renter pilot's possession provided you or the renter, lessor or owner of the Aircraft have no prior knowledge that such conversion, embezzlement or secretion would occur.

6. Consequential loss or damage, including loss of use, loss of profits, loss of guarantee or warranty or any other economic loss of any kind, or depreciation or the diminution in the value of your Aircraft.

D. LIMITS OF INSURANCE

1. Each Aircraft's limit of coverage is that specified in the Declarations for that Aircraft.

2. The most we will pay for loss or damage in any one event is as follows:

a. If the loss of or damage to your Aircraft is a Total Loss, we will pay you the Agreed Value shown in the Declarations, less any deductible shown in the Declarations. If you are paid for a Total Loss, at our discretion we can elect to take over the Aircraft as our property. You cannot, however, merely abandon a damaged Aircraft to us without our permission. We will return the unearned pro rata portion of the amount of the Aircraft Physical Damage Coverage premium we charged for that Aircraft that has been declared a Total Loss.

b. With respect to Partial Loss, we may pay for the least expensive and most reasonable means to repair the Aircraft or may pay for the loss in money, subject to any applicable deductible, as provided below:

(1) If repairs are made by other than you, the total of the following:

(a) cost to repair the damaged property with material of like kind and quality (excluding any charges for overtime);

(b) cost of the least expensive and most reasonable method of transporting new and/or damaged parts and/or the damaged Aircraft to the place of repair and the return of the repaired Aircraft to the place where the loss occurred or the place where the Aircraft is regularly based, whichever is closer;

(2) If repairs are made by you, the total of the following;

(a) actual cost to you of necessary material and parts of like kind and quality;

(b) actual wages paid for labor at the current straight-time rate at the place of repair plus 150% of this amount to cover supervision and overhead;

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(c) cost of the least expensive and most reasonable method of transporting replacement and/or damaged parts and/or the damaged Aircraft to the place of repair and the return of the repaired Aircraft to the place where the loss occurred or the place where the Aircraft is regularly based, whichever is closer.

c. With respect to any Partial Loss or Total Loss:

(1) The amount due under this Policy shall not exceed the amount due were the loss payable as a Total Loss;

(2) Any salvage value remaining shall inure to the benefit of us and you shall provide clear title thereto;

(3) Any equipment attached to the Aircraft, even if subsequent to the effective date of coverage, shall be considered a part of the Aircraft;

(4) There shall be no abandonment of any damaged property without our written consent.

If the loss is due to theft or disappearance, we shall have the right to return any found or stolen property at any time prior to actual payment of the claim hereunder, with payment for any physical damage sustained thereto.

As available, we will pay for repair or replacement of like kind and quality. We will not pay excess of like kind and quality amounts or for the cost of improvements.

E. DEDUCTIBLE

You may have an In Motion Deductible or a Not In Motion Deductible. The deductible which applies to each Aircraft is indicated on the Declarations. The indicated deductible will apply to any loss of or damage to your Aircraft except loss or damage caused by:

1. An accident with another aircraft that we insure but which is owned by someone other than you;

2. Fire, explosion, lightning, theft, vandalism; or

3. Accidental damage to your Aircraft while it is being transported after being dismantled.

F. YOUR DUTIES IN THE CASE OF LOSS OR DAMAGE

1. You must protect a damaged Aircraft from further damage or loss.

2. As soon as possible following loss of or damage to your Aircraft, you must notify us in writing at the address shown in the Declarations for Notices to Insurer. Such notice must identify the Aircraft involved in the loss or damage, state the following: (i) name of the Insured covered under this Policy, (ii) location of the event causing the loss or damage, (iii) current location of the Aircraft, (iv) names and addresses of any known witnesses and injured parties and (v) must provide us information of sufficient detail to inform us of the nature and circumstances causing the loss or damage.

3. You must promptly notify the police in the event you become aware of theft of, robbery of or pilferage to the Aircraft.

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4. You must provide us with a signed, sworn Proof of Loss Statement within ninety (90) days of the loss or damage.

5. You must cooperate with us. Cooperation includes, but is not limited to, allowing us to examine you under oath and assisting us in enforcing our rights under this Policy.

G. PHYSICAL DAMAGE COVERAGE CONDITIONS

1. The following procedure will be used to settle all disputes regarding damage to your Aircraft:

a. If you disagree with us as to the amount of damage, either you shall or we shall request in writing that the dispute be submitted for appraisal.

b. You and ourselves will then each select an appraiser and will inform the other of that choice within twenty (20) days of the initial notification of a request for appraisal.

c. The appraisers will select a competent and impartial umpire who is also a qualified appraiser. If the appraisers cannot agree on an umpire within fifteen (15) days, a judge in the state set forth in the address of the Named Insured listed in the Declarations can appoint an impartial umpire if asked to do so by you or us.

d. Each appraiser will appraise the damage of each item. If they do not agree, they will submit their differences to the umpire, provided, however, that agreement by any two of the three appraisers will decide the amount of the loss.

e. You will pay your appraiser, and we will pay ours. Any other costs of the appraisal, including the umpire, will be divided equally between you and ourselves.

f. Any award issued by the appraisal shall be final and binding upon the parties; provided, however, that any award we are required to pay shall not exceed the Agreed Value of your Aircraft, less the deductible, set forth in the Declarations.

2. We will pay you for loss of or damage to your Aircraft within sixty (60) days from the time agreement is reached on the amount of the loss or damage. We will deduct from the payment any premiums you owe and any other debts you have with us.

3. If an Aircraft is damaged, we will automatically reduce the Agreed Value stated in the Declarations for such Aircraft by the amount of damage. Once repairs are commenced, your Agreed Value will be increased by the value of the completed repairs, until the Agreed Value for such Aircraft is restored to the original Agreed Value set forth in the Declarations.

4. We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regardless of any other provision of this Policy.

SECTION II – BODILY INJURY AND PROPERTY DAMAGE LIABILITY COVERAGE

Under SECTION II - BODILY INJURY AND PROPERTY DAMAGE LIABILITY COVERAGE, there are four Coverage options. These Coverage options are described below. The Coverage option which applies to each Aircraft is indicated on the Declarations and is subject to the Limits of Insurance. Damages because of Bodily Injury include damages claimed by any person or organization for care, loss of services or death resulting at any time from the Bodily Injury. This insurance applies to Bodily Injury and Property Damage only if the Bodily Injury and Property Damage occur during the Policy Period and the Occurrence takes place in the Coverage Territory.

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A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY COVERAGE

1. Coverage D - Bodily Injury Liability Excluding Passengers

We will pay all sums an Insured legally must pay as damages because of Bodily Injury to which this insurance applies sustained by any person, excluding any Passenger, caused by an Occurrence and arising out of the:

a. Ownership, maintenance or use of the Aircraft; or

b. Maintenance or use of the Premises.

2. Coverage E - Property Damage Liability

We will pay all sums an Insured legally must pay as damages because of Property Damage caused by an Occurrence and arising out of the:

a. Ownership, maintenance or use of the Aircraft; or

b. Maintenance or use of the Premises.

3. Coverage F - Passenger Bodily Injury Liability

We will pay all sums an Insured legally must pay as damages because of Bodily Injury sustained by any Passenger caused by an Occurrence and arising out of the:

a. Ownership, maintenance or use of the Aircraft; or

b. Maintenance or use of the Premises.

4. Coverage G - Single Limit Bodily Injury and Property Damage Liability

We will pay all sums an Insured legally must pay as damages because of Bodily Injury sustained by any person (excluding any Passenger unless the words "including Passengers" appear in Item 9 of the Declarations) and Property Damage caused by an Occurrence and arising out of the:

a. Ownership, maintenance or use of the Aircraft; or

b. Maintenance or use of the Premises.

B. WHO IS AN INSURED

The following are Insureds:

1. You for any Aircraft.

2. Subject to AIRCRAFT INSURANCE REQUIREMENTS on page 1 of this Policy anyone else while using or riding in the Aircraft or any person or organization legally responsible for its use provided the actual use or riding is with your express permission. Except with respect to you, the provisions of this paragraph do not apply to:

a. Any employee with respect to Bodily Injury to another employee of the same employer injured in the course of such employment;

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b. Any person or organization or to any agent or employee thereof (other than your employee while acting in the course of your employee's employment by you) who:

(1) Makes, sells, rents, repairs or distributes aircraft; aircraft engines, components, or accessories: or fuel used in aircraft;

(2) Is engaged in the operation of an aircraft flying school, management service, or aerial application service; aircraft inspection, appraisal, certification or examination service; or commercial flying service, airline, airport, hangar, pilot training center or charter brokerage service;

(3) Is engaged in the instruction, evaluation, examination or certification of any pilot or Crew member or prospective pilot or Crew member;

(4) Is charging a fee or receiving any remuneration or benefit for providing any type of service whatsoever in connection with the ownership, maintenance or use of any Aircraft;

c. Any person or organization operating the Aircraft under the terms of any rental agreement or training program which provides any remuneration to you for the use of said Aircraft;

d. The owner or lessor, or any agent or employee thereof, of any aircraft which is subject to SECTION IV – SUBSTITUTE, NON-OWNED AND NEWLY ACQUIRED AIRCRAFT COVERAGE.

C. COVERAGE EXTENSIONS

In addition to the Limits of Insurance and only with respect to any claims or suits resulting from an Occurrence involving the Aircraft to which this insurance applies:

1. We have the right and duty to defend any Insured for a suit seeking damages for Bodily Injury or Property Damage to which this insurance applies, even if any allegations of the suit are groundless, false or fraudulent. We may investigate and settle any claim or suit as we consider appropriate. Our duty to defend, pay any claim or settle ends when the Limits of Insurance for Bodily Injury and Property Damage Liability Coverage has been exhausted by payment of judgments, settlements or tender into court having jurisdiction over such suit;

2. We will pay for the Insured's premiums for appeal bonds not exceeding judgments within the Limits of Insurance and bonds relating to the release of any property or personal belongings that are held as security, so long as the bonds relate to an Occurrence and the bond premium or premiums do not exceed the Limits of Insurance shown in the Declarations.

3. We will pay for the Insured:

a. Any bail bond required to be posted on an Insured’s behalf for the alleged violation, during the Policy Period, of a law or regulation, so long as the alleged violation arose from a designated use of the Aircraft. We will pay up to $5,000 for each such bond. We are not, however, under any obligation to apply for or furnish such bonds;

b. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable Limit of Insurance;

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c. All expenses incurred by you for first aid to others at the time of an accident for Bodily Injury to which this Policy applies; and

d. All reasonable expenses incurred by you at our request to assist us in the investigation or defense of the claim or suit, including actual loss of earnings up to $250 a day because of time off from work.

If this Policy is certified as proof of insurance under any governmental financial responsibility law applicable to Aircraft, we will pay the minimum amounts required by that law which do not exceed the Limit of Insurance of this Policy. You agree to reimburse us promptly for any amounts we would not have had to pay were it not for this clause.

D. EXCLUSIONS

In addition to the exclusions set forth in SECTION V - COMMON POLICY EXCLUSIONS, this insurance does not apply to any claim, suit, demand or loss that alleges:

1. Bodily Injury or Property Damage for which the Insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages:

a. That the Insured would have in the absence of the contract or agreement; or

b. Assumed in a contract or agreement that is an Insured Contract, provided the Bodily Injury or Property Damage occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an Insured Contract, reasonable attorney fees and necessary litigation expenses incurred by or for a third party other than an Insured are deemed to be damages because of Bodily Injury or Property Damage, provided:

(1) Liability to such party for, or for the cost of, that party’s defense has also been assumed in the same Insured Contract; and

(2) Such attorney fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are alleged.

2. Bodily injury or Property Damage that in any way, in whole or in part, arises out of, relates to or results from injury or damage expected or intended from the standpoint of the Insured. This exclusion does not apply to Bodily Injury resulting from the use of reasonable force to protect persons or property and to Bodily Injury or Property Damage resulting from efforts to prevent a hijacking or other dangerous interference of the Aircraft.

3. Any obligation of the Insured under a workers’ compensation, disability benefits or unemployment compensation law or any similar law(s);

4. Bodily Injury to your employee arising out of and in the course of employment by you or Bodily Injury to the spouse, child, parent, brother or sister of that employee as a consequence of such Bodily Injury to your employee; but this exclusion does not apply to liability assumed by you under any Insured Contract that is a prerequisite for the use of an airport or airport facility;

5. Bodily Injury that results from the rendering or failure to render professional services of any kind, including any medical treatment by a doctor, nurse, or other professional qualified to perform those services.

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6. Property Damage to property owned, occupied, rented or used by the Insured or in the care, custody or control of the Insured or as to which the Insured is for any purpose exercising physical control or transported by the Insured, except as provided in SECTION IV – SUBSTITUTE, NON-OWNED AND NEWLY ACQUIRED AIRCRAFT COVERAGE.

7. Bodily Injury to you or any additional Named Insured.

8. Bodily Injury or Property Damage that in any way, in whole or in part, arises out of, relates to or results from the application of or use by the Insured or his agent of all forms of fertilizers, fungicides, defoliants, herbicides, hormone selective weed killers, pesticides, insecticides and arsenical preparations or compounds or any other forms of chemical.

E. LIMITS OF INSURANCE

1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of:

a. Insureds under this Policy;

b. Persons or organizations who sustain Bodily Injury or Property Damage;

c. Claims made or suits brought (related or otherwise) on account of Bodily Injury or Property Damage;

d. Premiums paid; or

e. Aircraft to which this Policy applies;

If two or more Aircraft are insured under this Policy, the Limits of Insurance apply separately to each Aircraft.

2. Coverages D. Our total liability for all damages because of Bodily Injury sustained by any one person as the result of any one Occurrence shall not exceed the Limit of Insurance stated in the Declarations as applicable to Each Person. Subject to the above Each Person limit provision, our total liability for all damages because of Bodily Injury sustained by two or more persons as the result of any one Occurrence shall not exceed the Limit of Insurance stated in the Declarations as applicable to Each Occurrence.

3. Coverage E. Our total liability for all damages because of all Property Damage sustained by one or more persons or organizations as the result of any one Occurrence shall not exceed the Limit of Insurance stated in the Declarations as applicable to Each Occurrence.

4. Coverage F. Our total liability for all damages because of Bodily Injury sustained by any one Passenger as the result of any one Occurrence shall not exceed the Limit of Insurance stated in the Declarations as applicable to Each Person. Subject to the above Each Person limit provision, our total liability for all damages because of Bodily Injury sustained by two or more Passengers as the result of any one Occurrence shall not exceed the Limit of Insurance stated in the Declarations as applicable to Each Occurrence.

5. Coverage G. Our total liability for all damages because of Bodily Injury or Property Damage sustained by one or more persons or organizations as the result of any one Occurrence shall not exceed the Limit of Insurance stated in the Declarations as applicable to Each Occurrence.

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Subject to the Each Occurrence Limit of Insurance described in the paragraph above, if the Declarations indicate a Sub-Limit for Each Passenger, our total liability for all damages because of Bodily Injury to any one Passenger shall not exceed the Limit of Insurance stated in the Declarations as applicable to Each Person. Further, subject to this Each Person limit provision, our total liability for all damages because of Bodily Injury sustained by two or more Passengers as the result of any one Occurrence shall not exceed a Limit of Insurance which shall be calculated by multiplying the Each Person Limit of Insurance by the total number of Passenger (including Crew) seats as shown in Item 9 of the Declarations for the Aircraft involved in the Occurrence. This Limit of Insurance is included in, and not in addition to, the Each Occurrence Limit of Insurance shown on the Declarations.

In no event shall our liability for all Bodily Injury (including Passenger Bodily Injury) and Property Damage exceed the Limit of Insurance stated in the Declarations as applicable to Each Occurrence.

6. For the purpose of determining the limit of our liability as described in the above paragraphs of this provision, all Bodily Injury and Property Damage arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one Occurrence. Regardless of claimant's relationship to the injured party and the alleged injury, damage, loss, cost or expense claimed, all claims and related claims arising out of, based upon or attributable to the Bodily Injury to any person or Passenger are included in, and not in addition to, the Each Person and Each Occurrence Limits of Insurance specified in the Declarations, as applicable.

F. INSURED'S DUTIES IN THE CASE OF AN OCCURRENCE

1. As soon as possible following an Occurrence, claim, or loss, you must send written notice to us at the address shown for Notices to the Insurer in the Declarations. Such notice must identify the Aircraft involved, the Named Insured, the location of the Occurrence causing the loss or damage, the current location of the Aircraft, the names and addresses of any witnesses and injured parties, and inform us of the nature and circumstances of the Occurrence.

2. You must provide us with a signed, sworn statement regarding the Occurrence upon our request.

3. As soon as possible upon receipt of any claim made or suit filed against you arising from an Occurrence, you must provide written notice to us at the address shown for Notices to Insurer in the Declarations, and you must enclose a copy of any demand, notice, summons or other process you or your representative receives.

4. You must cooperate with us relating to your rights and ours under this Policy. Cooperation includes, but is not limited to, your allowing us to examine you under oath, your attendance at hearings and trials, your assistance in securing and giving evidence and obtaining the attendance of witnesses, and your assistance in the enforcement of our rights against any person or organization that may be liable to you because of loss, injury or damage for which this Policy provides insurance.

5. You shall not, except at your own cost, voluntarily make any payment, assume any obligation or incur any expenses other than for first aid or other expenses expressly set forth in this Policy.

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G. SEPARATION OF INSUREDS

Except with respect to the Limits of Insurance, and any rights and duties specifically assigned in this Policy to the Named Insured, this insurance applies separately to each Insured against whom claim is made or suit is brought.

H. DEPARTMENT OF DEFENSE INSURANCE REQUIREMENTS

If we issue a Civil Aircraft Certificate of Insurance Form DD 2400, or any replacement thereof, as required by regulations of the U. S. Army, Navy or Air Force, then the insurance policy provisions required by the regulations shall be deemed to be incorporated herein and substituted for any Policy provisions inconsistent therewith.

SECTION III - MEDICAL PAYMENTS COVERAGE

The coverage described below only applies to the Aircraft when indicated on the Declarations:

A. COVERAGE H - MEDICAL PAYMENTS

We will pay reasonable expenses incurred for necessary medical and funeral services to or for each Passenger (excluding any Crew unless the words "including Crew" appear in Item 10 of the Declarations) who sustains Bodily Injury during the Policy Period caused by an Occurrence that took place in the Coverage Territory, provided the Aircraft is being used by or with your permission. We will only pay those reasonable medical expenses incurred for services rendered and reported to us within one year from the date of the Occurrence

B. EXCLUSIONS

In addition to the exclusions set forth in SECTION V - COMMON POLICY EXCLUSIONS, we will not pay expenses for Bodily Injury excluded under SECTION II - BODILY INJURY AND PROPERTY DAMAGE LIABILITY COVERAGE. However, Exclusions 3., 4., and 7. under SECTION II do not apply to COVERAGE H - MEDICAL PAYMENTS.

C. LIMITS OF INSURANCE

Regardless of the number of Insureds, claims made, premiums paid or Aircraft to which this Policy applies, the most we will pay for Bodily Injury for each Passenger injured in any one Occurrence is the Each Person Limit of Insurance for Medical Payments Coverage shown in the Declarations. Our total liability for Medical Payments Coverage payable on behalf of all Passengers for Bodily Injury caused by one Occurrence shall not exceed the Each Occurrence Limit stated in the Declarations, regardless of the number of persons injured.

For the purpose of determining the limit of our liability, all medical expenses arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one Occurrence. No one will be entitled to receive duplicate payments for the same elements of injury under this SECTION III and SECTION II of this Policy.

D. YOUR DUTIES IN THE CASE OF MEDICAL PAYMENTS

1. As soon as possible following an Occurrence giving rise to a medical expense, you must notify us in writing at the address for Notices to Insurer in the Declarations. Such notice must identify the Aircraft involved, state the Named Insured, the location of the Occurrence causing the medical expense, the then current location of the Aircraft, the names and addresses of any witnesses and injured parties, the nature of the medical expense and

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provide sufficient detail concerning the Occurrence causing the medical expense so as to inform us of the nature and circumstances of the Occurrence.

2. The injured person must provide us with a signed, sworn Proof of Claim Statement within ninety (90) days after the medical expense was incurred. An injured person must also submit to physical examination by any doctor we select whenever we reasonably ask.

3. You and the injured person must cooperate with us. You and the injured person will also help us obtain medical reports and copies of records. Cooperation includes, but is not limited to, allowing us to examine you and the injured person under oath and assisting our enforcement of any rights we may have against any person or organization which may be liable to you because of injury with respect to which this Policy provides insurance. You must also attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses.

4. You shall not, except at your own cost, voluntarily make any payment, assume any obligation or incur any expenses other than those expressly set forth in this Policy.

5. We will pay the injured person or any person or organization rendering the services and such payment shall:

a. Reduce the amount payable hereunder for the injury; and

b. Not constitute admission of liability by an Insured or us.

SECTION IV- SUBSTITUTE, NON-OWNED AND NEWLY ACQUIRED AIRCRAFT COVERAGE

A. INSURANCE FOR TEMPORARY USE OF SUBSTITUTE AIRCRAFT

The insurance afforded by SECTION II and SECTION III shall apply to a temporary substitute aircraft subject to the following provisions:

1. The substitute aircraft is used as a temporary substitute for an Aircraft described in the Declarations which is withdrawn from normal use because of its breakdown, repair, servicing, loss or destruction,

2. The substitute aircraft is used in conformity with the terms of the Policy, and

3. The substitute aircraft is not owned in whole or in part by you.

In accordance with the Limits of Insurance provision under SECTION II and SECTION III, the Limits of Insurance shown in the Declarations shall be the same for the substitute aircraft as the Aircraft described in the Declarations.

B. INSURANCE FOR NON-OWNED AIRCRAFT

The insurance afforded by SECTION II and SECTION III shall apply to any other aircraft not owned in whole or in part by you, or furnished for your regular use subject to the following provisions:

1. The non-owned aircraft is used in conformity with the terms of the Policy, and

2. This coverage only applies to you and your employees.

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In accordance with the Limits of Insurance provision under SECTION II and SECTION III, the Limits of Insurance shown in the Declarations shall be the same for the non-owned aircraft as the Aircraft described in the Declarations.

C. INSURANCE FOR NEWLY ACQUIRED AIRCRAFT

If you acquire an aircraft in addition to or replacement of the Aircraft listed in the Declarations and report the acquisition to us within (thirty) 30 days, the insurance afforded by SECTION I, SECTION II and SECTION III shall apply from the date of acquisition, but only if we insure all aircraft you own in whole or in part as of the date of acquisition of the newly acquired aircraft.

The Agreed Value limit of coverage under Section I shall be the actual purchase price of the newly acquired aircraft, but no more than 150% of the highest Agreed Value of any Aircraft shown in the Declarations. In accordance with the Limits of Insurance provision under SECTION II and SECTION III, the Limits of Insurance shown in the Declarations shall be the same for the newly acquired aircraft as the Aircraft described in the Declarations.

You will owe us a premium for the extension of insurance to the newly acquired aircraft.

SECTION V – COMMON POLICY EXCLUSIONS

In addition to other exclusions set forth in this Policy, the following exclusions apply to all Coverages provided by this Policy:

A. WAR RISKS AND OTHER PERILS EXCLUSIONS

This Policy does not cover loss or damage to your Aircraft or apply to any claim, suit, demand or loss that alleges Bodily Injury or Property Damage that in any way, in whole or in part, arises out of, relates to or results from:

1. War (whether or not declared), invasion, acts of foreign enemies, hostilities, civil war, rebellion, insurrection, martial law, military or usurped power or attempts at usurpation of power;

2. Any hostile act or detonation of any device involving atomic or nuclear fissions and/or fusion or other like reaction resulting in the release of radioactive force or matter;

3. Strikes, riots, civil commotions or labor disturbances;

4. Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purpose and whether claim, loss or damage resulting therefrom is accidental or intentional, including the dispersal or application of pathogenic or poisonous biological or chemical materials;

5. Any malicious act or act of sabotage;

6. Confiscation, nationalization, seizure, restraint, detention, appropriation or requisition by or under any government, public or local authority; or

7. Hijacking or any unlawful seizure or wrongful exercise of control of an Aircraft or Crew In Flight, including any attempted seizure or control, made by any person or persons acting without the consent of the Insured.

Further, the Policy does not apply to loss or damage to your Aircraft or apply to any claim, suit, demand or loss that alleges Bodily Injury or Property Damage that in any way, in whole or in part

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arises out of, relates to or results from injury or damage while the Aircraft is outside the control of the Insured or the appropriate government and/or civil authorities by reason of the perils described in this Policy provision. The Aircraft shall be deemed to have been restored to the control of the Insured or the appropriate government and/or civil authorities upon the safe return of the Aircraft to the Insured at an airfield not excluded by any geographical limits of the Policy and entirely suitable for the operation of the Aircraft. Such return shall require that the Aircraft be parked with engines shut down.

B. ASBESTOS, FUNGI OR BACTERIA HAZARDS

This Policy does not cover loss or damage to your Aircraft or apply to any claim, suit, demand or loss that alleges Bodily Injury or Property Damage that in any way, in whole or in part, arises out of, relates to or results from the Asbestos Hazard or Fungi or Bacteria Hazard.

This exclusion includes, but is not limited to, compliance with any request, demand, order, or statutory or regulatory requirement, or any other action authorized or required by law, or any other claim, suit, demand, loss, cost, or expense arising out of, relating to or resulting from the investigation of, abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, remediating or disposing of, or in any way responding to, or assessing the effects of:

1. Asbestos; or

2. Fungi or bacteria in any manner or form whatsoever, including without limitation mold, mildew, yeast, spores, mycotoxins, endotoxins, viruses or other pathogens, as well as any particulates or by-products of any of the foregoing;

as well as any loss, costs, fees, expenses, penalties, judgments, fines, or sanctions arising out of, relating thereto or resulting therefrom.

C. UNLAWFUL ACTIVITY

This Policy does not cover loss or damage to your Aircraft or apply to any claim, suit, demand or loss that alleges Bodily Injury or Property Damage that arises from either the willful violation of a penal statute or offences committed by or with the knowledge or consent of the Insured or any executive officer, partner, or managing agent of such Insured.

D. AIRCRAFT INSURANCE REQUIREMENTS

This Policy does not cover loss or damage to your Aircraft or apply to any claim, suit, demand or loss that alleges Bodily Injury or Property Damage if the requirements shown in the AIRCRAFT INSURANCE REQUIREMENTS on page 1 of this Policy are not met.

E. NOISE, POLLUTION AND OTHER PERILS EXCLUSION CLAUSE

1. This Policy does not cover loss or damage to your Aircraft or apply to any claim, suit, demand or loss that alleges Bodily Injury or Property Damage that in any way, in whole or in part, arises out of, relates to or results from:

a. Noise (whether or not audible to the human ear) or vibration, including sonic boom and similar phenomena associated with trans-sonic and supersonic movement, generated by the operation of the Aircraft or any of its parts and similar phenomena associated with the foregoing;

b. Pollution and contamination of any kind whatsoever,

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c. Electrical and electromagnetic interference, or

d. Interference with the use of property,

unless caused by or resulting from an Aircraft crash, fire, explosion or collision or a recorded In Flight emergency causing abnormal Aircraft operation.

2. With respect to SECTION II paragraph C.COVERAGE EXTENSIONS, the provision in the Policy concerning any duty we have to investigate or defend claims shall not apply and we shall not be required to investigate or defend:

a. Claims excluded by paragraph 1. above; or

b. A claim or claims covered by the Policy when combined with any claims excluded by paragraph 1. above.

3. If as a result of any claim or claims an Insured incurs that is covered and not covered by this policy as described in 2. above, we shall (subject to the Condition YOUR DUTIES IN CASE OF LOSS OR DAMAGE and the Condition INSURED'S DUTIES IN CASE OF AN OCCURRENCE and the Limits of Insurance of this Policy reimburse the Insured for that portion of the following items, which may be allocated to the claim or claims covered by the Policy:

a. Damages awarded against the Insured and

b. Defense fees and expenses incurred by the Insured.

F. NUCLEAR RISKS EXCLUSION CLAUSE

1. This insurance does not apply to any claim, “suit”, demand or loss or damage that alleges:

a. Loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss; or

b. Any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from:

(1) The radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof;

(2) The radioactive properties of, or a combination of radioactive properties with toxic, explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto; or

(3) Ionizing radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever.

2. It is understood and agreed that such radioactive material or other radioactive source in paragraph 1. b. (2) and (3) above shall not include:

a. Depleted uranium and natural uranium in any form;

b. Radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, educational, or industrial purpose.

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3. This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which:

a. The Insured under this Policy is also an Insured or an additional Insured under any other insurance Policy; or

b. Any person or organization is required to maintain financial protection pursuant to legislation in any country; or

c. The Insured under this Policy is, or had this Policy not been issued would be, entitled to indemnification from any government or agency thereof.

4. Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph 2, shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that:

a. In the case of any claim in respect of radioactive material in the course of carriage as cargo, including storage or handling incidental thereof, such carriage shall in all respects have complied with the full International Civil Aviation Organization “Technical Instructions for the Safe Transport of Dangerous Goods by Air”, unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation;

b. This Policy shall only apply to an incident happening during the period of this Policy and where any claim by the Insured against us or by any claimant against the Insured arising out of such incident shall have been made within three (3) years after the date thereof;

c. In the case of any claim for the loss of or destruction of or damage to or loss of use of an Aircraft caused by or contributed to by radioactive contamination, the level of such contamination shall have exceeded the maximum permissible level set out in the following scale:

Emitter

(IAEA Health and Safety Regulations)

Maximum permissible level of non-fixed radioactive surface contamination (Averaged over 300 cm2)

Beta, gamma and low toxicity alpha emitters Not exceeding 0.4 Bequerels / cm2

(10-5 microcuries / cm2)

All other alpha emitters Not exceeding 4 Bequerels / cm2

(10-4 microcuries / cm2)

d. The coverage afforded hereby may be cancelled at any time by us giving seven (7) days’ notice of cancellation.

SECTION VI – POLICY CONDITIONS

1. BANKRUPTCY

Bankruptcy or insolvency of the Insured or the Insured's estate will not relieve us of any obligations under this Policy, unless otherwise determined by the applicable bankruptcy court.

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2. CONCEALMENT, MISREPRESENTATION OR FRAUD

This Policy is void as to you and any other Insured if you or any other Insured under the Policy has concealed or misrepresented any material fact or circumstance relating to this insurance, including any statements in the application or other submitted documents in connection with the underwriting of this Policy, whether before or after a loss.

3. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US

If any Insured for whom we make payment under this Policy has rights to recover damages from another, those rights are transferred to us. The Insured must do everything necessary to secure our rights and must do nothing after a loss or damage or an Occurrence to impair them. This condition does not apply to COVERAGE H - MEDICAL PAYMENTS.

4. OTHER INSURANCE

Except with respect to insurance afforded by SECTION IV and to insurance specifically purchased by the Insured to apply in excess of this Policy, if there is other valid and collectible insurance available to the Insured for loss or damage, liability or expense covered by this Policy, we shall not be liable under this Policy for a greater proportion of such loss or damage, liability or expense than our applicable Limit of Insurance bears to the total applicable limit of liability of all valid and collectible insurance against such loss or damage, liability or expense.

Insurance afforded by SECTION IV shall be excess insurance over any other valid and collectible insurance available to the Insured, either as insured under any policy applicable to the Aircraft or otherwise, and if such other insurance shall have been written through us as primary insurance then our Limits of Insurance under this Policy shall be reduced by the applicable limits of such other Policy.

5. ASSIGNMENT AND TRANSFER

Your rights and duties under this policy may not be transferred without our written consent, except in the case of death or adjudicated bankruptcy to an individual Named Insured. If you die, your rights and duties will be transferred to your legal representative but only within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property, but in no event for more than sixty (60) days following such death or adjudication.

6. CHANGING THIS POLICY

You may change your coverage under this Policy by requesting through your agent that we add an endorsement to this Policy, but such change in coverage will only be effective if and when we accept the change and issue an endorsement. Notice to your agent alone will not change any terms of this Policy.

7. STATE LAWS

If any terms of this Policy conflict with applicable state law, we will comply with that law.

8. POLICY PERIOD

This Policy will begin and end at the time and on the dates shown in the Declarations.

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9. COVERAGE TERRITORY

You are covered during the Policy Period up to the Limits of Insurance shown in the Declarations with respect to the Aircraft anywhere in the world with the exception of any country or jurisdiction which is subject to trade or other economic sanction or embargo by the United States of America.

10. LEGAL ACTION AGAINST US

No person or organization has a right under this Policy:

a. To join us as a party or otherwise bring us into a suit asking for damages from an Insured; or

b. To sue us on this Policy unless all of its terms have been fully complied with.

In respect to Liability Coverage, a person or organization may sue us to recover on an agreed settlement or on a final judgment against an Insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Policy or that are in excess of the applicable Limit of Insurance. An agreed settlement means a settlement and release of liability signed by us, the Insured and the claimant or the claimant’s legal representative. However, we do not waive our right to commence an action in any court of competent jurisdiction or to seek a transfer to another court as permitted by law.

In respect to Physical Damage Coverage, we do not have to pay, and you do not have the right to sue on this Policy, unless all of its terms have been fully complied with and until thirty (30) days after the required proofs of loss have been filed with us and the amount of loss or damage is determined as provided by the Policy, nor at all unless commenced within twelve (12) months after the date of the loss or damage.

11. CANCELLATION

You may cancel this Policy at any time by telling us in writing what date you want your coverage to end. We will compute the premium earned, including any penalty for early cancellation, using our short rate table, which is incorporated by reference and made a part hereof. Any premium refund due to you will be refunded to you.

We may cancel this Policy at any time by mailing or delivering notice to you at the address shown in the Declarations at least thirty (30) days before the effective date of cancellation. If, however, this Policy is being cancelled by us because you failed to pay a premium, only ten (10) days notice shall be given before the coverage is cancelled. If we cancel your Policy, any refund due to you will be pro rata. The mailing of the notice will be deemed sufficient proof that you were notified.

12. INSPECTION AND AUDIT

You agree to allow us to inspect your Aircraft, property and operations at any reasonable time that we request. We are not obligated to make any inspections, and inspections we do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections or purport to perform the duty of any person or organization to provide for the health or safety of workers or the public. Nor do we warrant that conditions are safe or healthy or comply with laws, regulations, codes, or standards.

You also agree to let us examine your books and records for information regarding the use, ownership, and maintenance of your Aircraft. We have the right to request, review, and audit such records as they relate to this insurance during the Policy Period and for a period of three (3) years following the expiration of this Policy. Any additional premium as a result of such audit is due and payable by you after notice from us.

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13. VIOLATION OF ECONOMIC OR TRADE SANCTION LAWS OR REGULATIONS

Payment of loss under this Policy shall only be made in full compliance with all United States of America economic or trade sanction laws or regulations, including, but not limited to, sanctions, laws and regulations administered and enforced by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC").

The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential declarations of “national emergency”. OFAC has identified and listed numerous Foreign agents, Front organizations, Terrorists, Terrorist organizations, and Narcotics traffickers, as “Specially Designated Nationals and Blocked Persons.”

In accordance with OFAC regulations, if it is determined that you or any other Insured, or any person or entity claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be such a blocked or frozen contract, no claims or other payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and payments also apply.

SECTION VII – DEFINITIONS

The following definitions apply to this Policy:

1. "Aircraft" means the airplane(s), rotorcraft(s), balloon(s), and other types of Aircraft listed in the Declarations or described in SECTION IV - SUBSTITUTE, NON-OWNED AND NEWLY ACQUIRED AIRCRAFT COVERAGE or any endorsement attached to this Policy. Aircraft also includes any operating, navigating or radio equipment usually attached to an aircraft, and parts of your Aircraft that are temporarily removed. If removed parts have been replaced by other parts, coverage shall include only parts attached to the Aircraft. Any tools and repair equipment issued by the manufacturer with the purchase of your Aircraft and that are located in or with your Aircraft are also included.

2. “Asbestos” means any substance, regardless of its form or state, containing Asbestos.

3. “Asbestos Hazard” means:

a. Actual, alleged or threatened exposure to, ingestion of, inhalation of, absorption of, existence of or presence of, “Asbestos” in any manner or form whatsoever, either directly or indirectly,

b. The actual or alleged failure to warn, advise or instruct related to “Asbestos” in any manner or form whatsoever,

c. The actual or alleged failure to prevent exposure to “Asbestos” in any manner or form whatsoever, or

d. The actual or alleged presence of “Asbestos” in any manner or form whatsoever, in any place whatsoever, whether or not within a building or structure, including its contents.

4. “Bodily Injury” means bodily injury, including mental anguish, sickness or disease sustained by a person, including death resulting therefrom.

5. “Charter/Air Taxi” means use of the Aircraft for transporting Passengers or freight for hire and your Pleasure and Business use, but excluding instruction of or rental to others.

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6. “Commercial” means use of the Aircraft for instruction of, or rental to, others for their Pleasure and Business use, Charter/Air Taxi use, and your Pleasure and Business use.

7. “Crew” means the pilot-in-command, co-pilot, flight engineer, flight attendant or anyone else who is in, on, or boarding the Aircraft for assisting in the operation of the Aircraft.

8. “Fungi or Bacteria Hazard” means:

a. Actual, alleged or threatened exposure to, Ingestion of, inhalation of, absorption of, existence of, or presence of, fungi or bacteria in any manner or form whatsoever, including without limitation mold, mildew, yeast, spores, mycotoxins, endotoxins, viruses or other pathogens, as well as any particulates or by-products of any of the foregoing, either directly or indirectly;

b. The actual or alleged failure to warn, advise or instruct related to fungi or bacteria in any manner or form whatsoever;

c. The actual or alleged failure to prevent exposure to fungi or bacteria in any manner or form whatsoever; or

d. The actual or alleged presence of fungi or bacteria in any manner or form whatsoever, in any place whatsoever, whether or not within a building or structure, including its contents.

9. “In Flight” means, with respect to fixed wing Aircraft, the time commencing with the actual take-off run of the Aircraft and continuing thereafter until it has completed its landing run; and if the Aircraft is a rotorcraft, from the time the rotors start to revolve under power for the purpose of flight until they subsequently cease to revolve after landing; and if the Aircraft is a balloon, while it is inflated or being inflated or deflated.

10. “Ingestion” means physical loss or damage to the Aircraft turbine engine or turbine auxiliary power unit caused by accidental, sudden, immediate or unexpected ingestion of objects or substances not a part of the engine or auxiliary power unit and is the result of a single incident which is of sufficient severity, when discovered during the policy period, to require the immediate repair of the Aircraft turbine engines or turbine auxiliary power units in compliance with the requirements of the Aircraft turbine engine or turbine auxiliary power unit manufacturer.

11. “In Motion” means while the Aircraft is moving under its own power or the momentum generated therefrom or while it is In Flight and, if the Aircraft is a rotorcraft, any time that the rotors are rotating or while it is In Flight and, if the Aircraft is a glider or balloon, any time it is being transported, towed or while it is In Flight.

12. “Insured Contract” means:

a. Any contract which requires as a prerequisite of the use of an airport or airport facility the indemnification of a military or governmental authority, except in connection with work performed for the military or governmental authority; or

b. that part of any contract or agreement pertaining to ownership maintenance or use of Aircraft or Premises under which any Insured assumes the tort liability of another party to pay for Bodily Injury or Property Damage to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any written contract or written agreement.

“Insured Contract” does not include that part of any contract or agreement:

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a. With or for the benefit of any Passenger, Crew or their heirs;

b. That pertains to major alteration or major repairs to Aircraft, Aircraft parts or accessories; or

c. That pertains to the purchase or sale of Aircraft, Aircraft parts or accessories.

13. “Lost In Flight” means an Aircraft which is not located, or its whereabouts reported, within sixty (60) days after In Flight commences.

14. "Not in Flight" means all circumstances not covered by In Flight.

15. “Not In Motion” means all circumstances not covered by In Motion.

16. “Occurrence” means an accident and includes continuous or repeated exposure to the conditions which result in Bodily Injury or Property Damage neither expected nor intended by the Insured. In the event of continuing or progressively deteriorating Bodily Injury or Property Damage over any length of time, such Bodily Injury or Property Damage shall be deemed to be one Occurrence, and shall be deemed to occur only when such Bodily Injury or Property Damage first commences.

17. “Partial Loss” means any physical loss of or damage to the Aircraft other than a Total Loss.

18. “Passenger” means any person in, on, or boarding the Aircraft for the purpose of riding or flying in the Aircraft or alighting from the Aircraft after In Flight or attempted In Flight. The term “Passenger” also includes Crew.

19. “Pleasure and Business” means use of the Aircraft for personal and/or business related purposes where no charge is made for such use. However, you may be reimbursed for reasonable operating expenses provided such reimbursement does not result in a financial profit or gain.

20. “Premises” means such portions of airports or heliports and buildings thereon as are used by you in connection with the storage, maintenance, or operation of the Aircraft.

21. “Property Damage” means:

a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or

b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the Occurrence that caused it.

For the purposes of this insurance, electronic data is not tangible property.

22. “Total Loss” means any physical loss of or damage to the Aircraft for which the cost of repair to the Aircraft when added to the value of the Aircraft after it is damaged and prior to repairs equals or exceeds the Agreed Value of the Aircraft set forth in the Declarations. An Aircraft which is Lost In Flight shall be deemed to be a Total Loss.

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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MEXICO WARNING ENDORSEMENT

WARNING – Aircraft accidents in the Republic of Mexico are subject to the laws

of Mexico, not the laws of the United States of America, and are considered a

CRIMINAL OFFENSE as well as a civil matter. This policy will NOT meet the

Mexican insurance requirements. You must make certain you purchase liability

insurance through a licensed Mexican Insurance Company.

All other terms and conditions of this Policy remain unchanged.

Endorsement Number:

Policy Number:

Named Insured:

This endorsement is effective on the inception date of this Policy unless otherwise stated herein:

Endorsement Effective Date: