All-Clear Aircraft Management Policy€¦ · United States Aircraft Insurance Group USAIG is...

United States Aircraft Insurance Group USAIG is managed by United States Aviation Underwriters, Incorporated

Home Office: 125 Broad Street, 6th Floor, New York, NY 10004 F360AM EJM 05/13

All-Clear Aircraft Management Policy (A Several Liability Combination Policy)

Issued to: Executive Jet Management, Inc., et al

4556 Airport Road Cincinnati, OH 45226

Arranged by: Aon Aviation

199 Water Street 10th Floor

New York, NY 10038

TABLE OF CONTENTS ITEMS PAGE NO.

I

Preface Coverage Summary Page 1 and 2 Your All Clear Aircraft Policy 3 through 6

Provisions Specially Applicable to this Combination Policy 3 Policy period 3 When and where you are covered 4 Policy limits 4 What is an aircraft 4 If you have a loss 5 What you must do 5 Assignment-transfer 5 Changing this policy 5 Cancelling this policy 5 Legal actions 5 State law 6 Limitations on use 6 If you have other insurance 6 Our right of recovery 6 Extension of Coverages for “Insured Owner’s” under policy 6 Invalidation (Breach of Warranty) 6 Reports and Particulars 6 Limited Liability Company (LLC) 7 Assignment/Bankruptcy/Insolvency 7

Your Liability Coverage 8 through 16

Combined Liability Coverage for bodily injury and property damage 8 through 12 Your Aircraft Liability Coverage for aircraft shown on your “Insured Owner’s Interest Endorsement.” 8 “Insured Owner’s” Liability Coverage for bodily injury and

property damage for airport premises 8 Non-Owned Aircraft Liability Coverage 9 Property Damage to Non-Owned Aircraft 9 Ground hangarkeeper’s liability Coverage 9 and 10 Cargo liability Coverage 10 Coverage for bodily injury and property damage for sale of “Insured Owner’s”

owned aircraft or parts 10 Reimbursement of emergency expenses 11 Family Assistance Coverage 11 Fire Legal Liability Coverage 11 Liability Coverage for Automobiles on Airport Premises 12 Garagekeeper’s Liability Coverage 12

Who’s covered 12 Who’s not covered 13 Supplementary Payments 13 and 14

Defending suits 14 Bonds 14 Interest 14 Expenses 14 Suits for liability payment 14

Liability claims we won’t cover 14 through 16 Aircraft 14 Assumed liability 14 Intentional injury 15 Workers’ compensation 15 Property damage 15 Personal injury 15 and 16

TABLE OF CONTENTS ITEMS PAGE NO.

II

Bodily injury 16 Air traffic control operations 16

Financial Responsibility Laws 16 Your Aircraft Physical Damage Coverage 17 through 23

Automatic increased value 17 What we will pay 17

Total loss 17 Partial loss - you make repairs 17 Partial loss - someone else makes repairs 17 and 18

Your not in-motion deductible 18 Your in-motion deductible 18 Emergency landing 18 Trip interruption expense 19 Spare engines and parts Coverage 19 Extra expense Coverage 19 Extra expense Coverage for temporary replacement parts 19 and 20 Physical Damage Coverage for Mechanics’ Tools 20 What you must do 21 When we will pay 21 Suits for aircraft physical damage payments 21 Rights against third parties 21 Automatic reinstatement 21 Arbitration of disputes 21 Salvage 21 and 22 Aircraft damage we won’t cover 22

Tires 22 Wear-tear 22 Consequential damage 22 Embezzlement 22

Lienholder’s or Lessor’s Interest Coverage 22 and 23 Lay-Up Credit for Owned Aircraft 23

Your Voluntary Settlement Coverage

with Weekly Payments and Permanent Total Disability 24 and 25 Your Medical Coverage 26

What we will pay 26 Whom we will pay 26 Proof of loss 26 Suits for medical payment 26

Your Coverage for Newly Acquired Aircraft 27 War, Hi-jacking and Other Perils Exclusion Clause 28 Date Change Recognition Exclusion and Limited Write-Back 29 Noise and Pollution and Other Perils Exclusion 30 Asbestos Exclusion 31 Nuclear Risk Exclusion with Exceptions 32 and 33 Mexican Warning Notice 34 Participating Company Schedule

TABLE OF CONTENTS ENDORSEMENTS NUMBERS

III

Terrorism Risk Insurance Act, as amended 1 Policyholder Disclosure NOTICE OF TERRORISM INSURANCE COVERAGE

“Insured Owner’s” Interest Endorsement 2 War, Hi-jacking and Other Perils Exclusion Clause Limited Write-Back Provisions Per Occurrence Endorsement (Applicable to Your Liability Coverage and Your Medical Coverage) 3 War, Hi-jacking and Other Perils Exclusion Clause Limited Write-Back Provisions including Certified Terrorism Loss Coverage (Applicable to Your Aircraft Physical Damage Coverage) 4 United States Department of Transportation Form 4522 Standard Endorsement Air Taxi Operator Policies of Insurance for Aircraft Bodily Injury and Property Damage Liability 5 United States Department of Transportation Amendment Issued with Policy subject to insurance requirements contained in 14 CFR Part 205 of the U.S. Department of Transportation 6

USAIG All-Clear Aircraft Management Policy Policy No. SIHL1-264U (A Several Liability Combination Policy)

UNITED STATES AVIATION UNDERWRITERS, Incorporated

125 Broad Street, 6th Floor, New York, NY 10004

F360AM EJM 05/13

Renewal of SIHL1-896G IN CONSIDERATION of the payment of the premium and of the declarations set forth in the attached Insurance Form, the Participating Member Companies of the United States Aircraft Insurance Group (collectively the “Companies” and each individually a “Company”) do severally (but not jointly) issue insurance as follows: Name of “Named Insured:”

Executive Jet Management, Inc., their parent or parent companies and all its subsidiary, affiliated, managed, owned or controlled companies (either directly or indirectly) now in existence or hereafter formed or acquired, jointly or severally, as their respective interests may appear (here and after “EJM”) and each of the Owners as described in Endorsement Number 2 (here and after “Insured Owners”).

Subsidiary, affiliated, managed, owned or controlled companies appearing above means any company or entity of which at least fifty percent (50%) of the stock or, if a partnership, fifty percent (50%) interest in the partnership, is owned by the “Named Insured” or for which the “Named Insured” has assumed active management control. Subsidiary, affiliated, managed, owned or controlled companies acquired after the effective date of this policy shall be reported to the Aviation Managers within sixty (60) days after they are acquired. You agree to pay any additional premium due.

Address of “Named Insured:”


The insurance provided by this policy shall be in accordance with and subject to the provisions, conditions and limitations herein set forth and in the attached Insurance Form, which is made a part of this policy.

ALL-CLEAR AIRCRAFT MANAGEMENT POLICY CHANGES: The terms of this policy shall not be waived or changed except by an endorsement - issued and signed by the United States Aviation Underwriters, Incorporated (herein called the Aviation Managers) on behalf of the Participating Member Companies - to form a part of this policy. Nor shall notice to any agent, or knowledge possessed by any agent or by any person, waive or change any part of this policy. IN WITNESS WHEREOF, the Companies hereunder have caused this Coverage to be executed by the Aviation Managers, but this Coverage shall not be valid unless this Insurance Form, the policy and all of its endorsements are signed by the Aviation Managers.

SEE ATTACHED PARTICIPATING COMPANY SCHEDULE

Policy No. SIHL1-264U Issued at New York, NY on April 9, 2013

United States Aviation Underwriters, Incorporated Aviation Managers

David L. McKay President


COVERAGE SUMMARY PAGE

F360AM EJM 05/13 Page 1

The Coverage Summary Pages, along with the policy and any attached endorsements you have, form this complete insurance policy. Name and Address of “Named Insured:”

Executive Jet Management, Inc., their parent or parent companies and all its subsidiary, affiliated, managed, owned or controlled companies (either directly or indirectly) now in existence or hereafter formed or acquired, jointly or severally, as their respective interests may appear (here and after “EJM”) and each of the Owners as described in Endorsement Number 2 (here and after “Insured Owners”).

Subsidiary, affiliated, managed, owned or controlled companies appearing above means any company or entity of which at least fifty percent (50%) of the stock or, if a partnership, fifty percent (50%) interest in the partnership, is owned by the “Named Insured” or for which the “Named Insured” has assumed active management control. Subsidiary, affiliated, managed, owned or controlled companies acquired after the effective date of this policy shall be reported to the Aviation Managers within sixty (60) days after they are acquired. You agree to pay any additional premium due.


The Policy Period runs continuously beginning on May 1, 2013 at 12:01 A.M. Local Standard Time at the address shown above until cancelled. Your business is: Aircraft Management. You own, wholly or partially, lease, or manage the aircraft.

Aircraft Use. You may use the aircraft for all operations incidental to your business, including, but not limited to, passenger carrying for which a charge is made. Aircraft. All aircraft shown on the “Insured Owner’s Interest Endorsement” attached to this policy.

Pilots. Any pilot who has been approved by “EJM” or their designee. Whom we will pay. Payments for loss covered under “Your Aircraft Physical Damage Coverage” will be adjusted with “EJM” and made payable to “EJM”, the “Insured Owner” and any lienholder or lessor, as their interest may appear.


COVERAGE SUMMARY PAGE


Limits of Your Coverage. You are insured up to the Limits shown below. The limits may be altered by the policy or by any attached endorsements. Coverage Limit of Coverage

Combined Liability Coverage for The amount set forth under the “Insured Owner’s Interest bodily injury and property damage Endorsement” attached to this policy. Personal Injury $ 25,000,000 Each Occurrence and Aggregate

(Part of and not in addition to “Combined Liability Coverage for bodily injury and property damage”)

Medical Coverage $ 150,000 Each Person Voluntary Settlement The amount set forth under the “Insured Owner’s Interest Endorsement” attached to this policy. Aircraft Physical Damage Coverage The amount set forth under the “Insured Owner’s Interest

Endorsement” attached to this policy. Unless stated otherwise, all sums shown in this policy are expressed in United States currency. This policy contains the following Endorsements which are part of your policy: 1 through 6. Premium See Cover Letter Endorsement Premium See Cover Letter Total Premium See Cover Letter

This policy is written through the Aviation Managers on May 1, 2013.

Approved by: United States Aviation Underwriters, Inc. Aviation Managers

David L. McKay President



I. YOUR ALL-CLEAR AIRCRAFT POLICY

Throughout this policy the words “you” and “your” refer to “EJM” and any “Insured Owner” as evidenced by the records of “EJM”. “Insured Owner” means any person or organization that is operating under an Aircraft Management Agreement with “EJM”. An “Aircraft Management Agreement” means any written agreement whereby “EJM” agrees to provide pilot/aircraft management services on a regular or frequent basis. “We,” “our” or “us” mean the Participating Companies executing this policy (collectively the “Companies” and each individually a “Company”). “Aviation Managers” means United States Aviation Underwriters, Incorporated.

Provisions Specially Applicable to this Combination Policy. Each of the Companies shall be severally (but not jointly) liable solely for its own pro rata share, as set forth in the Participating Company Schedule, for any loss hereunder. Each Company’s liability hereunder for its pro rata share of the losses shall be separate and apart from the liability for the pro rata shares of the other Companies so that each Company shall be liable solely for its own pro rata share of losses and not for the pro rata shares of any other Company.

Service of process or of any notice or proof of loss required by this policy, made upon any one of the Companies, or upon a duly authorized agent of any one of the Companies, shall constitute service upon all Companies. Each of the Companies hereby appoints the Aviation Managers as its duly authorized agent for receipt of service of process or any notice or proof of loss hereunder.

Upon cancellation by any Company of its liability under the policy, the return premium (if any) to be paid by such Company shall be based upon the proportions set forth in the Participating Company Schedule.

Even if a mutual insurance company is included among the Companies executing this policy, you will not be required to pay any assessment or other contingent liability by virtue of the fact that you are a policyholder of such a mutual insurance company.

A. Policy period.

1. Although this policy has been issued without an expiration date, all premiums shown

on this policy and any endorsements attached to it have been computed for each annual period or the pro-rated part of an annual period beginning on the effective date of this policy.

2. At least sixty (60) days before each anniversary date of this policy, “EJM” and the

Aviation Managers agree to review and, if necessary, negotiate any changes applicable to the next annual period with respect to (but not limited to) rates, premiums, Coverages, conditions and exclusions (terms) for this policy

3. If “EJM” and the Aviation Managers fail to agree on terms for this policy’s next

annual period, either “EJM” or the Aviation Managers have the right cancel this policy effective the anniversary date, regardless of the provisions stated in the “Cancelling this policy” section of this policy.

4. Wherever the term “aggregate” appears in this policy, it shall apply to an annual

period ending at each anniversary date.


YOUR ALL-CLEAR AIRCRAFT POLICY


B. When and where you are covered.

You are covered for occurrences that take place during the policy period while your aircraft described in the “Insured Owner’s Interest Endorsement” is anywhere in the world. By an occurrence we mean an accident or continuous or repeated exposure to conditions which you don’t expect to happen resulting in bodily injury, property damage or loss of or damage to your aircraft. All injuries or damage resulting from generally the same conditions will be considered one occurrence. And, as respects Coverage provided under Section II. Your Liability Coverage, paragraph A.7., Coverage for bodily injury and property damage for sale of the “Insured Owner’s” owned aircraft or parts “Insured Owner’s”, are covered for occurrences which take place during the policy period, which happen anywhere in the world, but only after the “Insured Owner” has relinquished physical possession of the aircraft or spare parts, or the “Insured Owner” has completed services performed for others.

C. Policy limits.

The limits of your Coverage are shown on the Coverage Summary Page. These limits are the most we will pay for:

1. damage to or loss of your aircraft;

2. bodily injury caused by your aircraft, including sickness, disease, mental

anguish, personal injury or death;

3. property damage caused by your aircraft, including loss of use of the damaged property.

If two or more aircraft are protected under this policy, the “Limits of Coverage” shall apply separately to each aircraft, unless an annual aggregate limit is stated, in which case, the most we will pay for all occurrences during this policy period is the “Aggregate Limit of Coverage” shown on the Coverage Summary Page.

D. What is an aircraft?

Your aircraft includes your airplane or rotorcraft and any operating, navigating or radio equipment that’s usually attached to the aircraft. Parts of your aircraft that are temporarily removed are also included even if replaced by similar parts. Any tools and repair equipment standard for your type of aircraft are also included. In addition, we will cover personal property, carried in your aircraft, which is used in the operation of your aircraft. If you have other insurance covering a loss to a replaced part or personal property, this Coverage shall be excess of the other insurance. And, personal property does not include wearing apparel and other personal property not used in the operation, communication or navigation of your aircraft. Parts of your aircraft that are temporarily removed are also included. We will also include any “spare engine” which you own, lease, rent or borrow under written agreement, while it’s in your possession or under your control. A “spare engine” is any propulsion device, including auxiliary power units, which is intended to be installed in your aircraft. The Limits of Coverage for each “spare engine” shall be its actual value, which is included as part of and not in addition to the Limit of Coverage for “Your Aircraft Physical Damage Coverage” for your aircraft. “Your in-motion deductible” and “Your not in-motion deductible” will not apply to “spare engines”.




E. If you have a loss.

If an occurrence happens, “EJM” should notify the Aviation Managers, in writing, as soon as reasonably possible. Include the time and place of the occurrence and the names and addresses of any injured people and witnesses.

F. What you must do.

You agree to notify the police if your aircraft, or any of its parts, is stolen. You will send us copies of all legal documents if you’re sued or someone files a claim against you. You agree to help us in obtaining and giving evidence, attending hearings and trials, and getting witnesses to testify. And you agree not to make any statements without our permission, except to government officials. In addition, you agree not to voluntarily make any payments or take on any other legal responsibility without our permission. If you do, we may not reimburse you - even if the loss or expense would have been covered by this policy. We will reimburse you for money spent for emergency first aid to others at the time of an accident.

G. Assignment-transfer.

Neither you nor any other person or organization covered under this policy can transfer your interest under the policy without the written consent of the Aviation Managers.

H. Changing this policy.

Only “EJM” can request changing your Coverage by having the Aviation Managers add an endorsement to this policy. An “Insured Owner” can request changing Coverage only as it relates to them by having the Aviation Managers add an endorsement to this policy. Notice to your agent will not change the terms of this policy nor stop us or the Aviation Managers from enforcing our rights under it.

I. Cancelling this policy.

“EJM” can cancel this policy by telling us, in writing, when not less than ninety (90) days in the future you want your coverage to end. We will provide each “Insured Owner” with ninety (90) days written notice of “EJM” desire to cancel coverage. We will compute the premium we’ve earned using the customary short rate table and procedure. Any premium we have not yet earned will be returned to “EJM”.

We or the Aviation Managers can cancel this policy by mailing or delivering notice to “EJM” at the address shown on the Coverage Summary Page at least ninety (90) days before the cancellation date. We will also provide each “Insured Owner” with ninety (90) days written notice. If, however, this policy is being cancelled because “EJM” didn’t pay the premium due, only ten (10) days notice will be provided. The mailing or delivery of the notice will be sufficient proof that you were notified. We will compute the premium we’ve earned based on the percentage of the policy period that has been used at the time of cancellation. Any premium we have not yet earned will be returned to “EJM”.

J. Legal actions.

Each of us named in the Participating Company Schedule, or the Aviation Managers, can bring suit against you if you fail to pay a premium when it's due, or fail to live up to the terms of this policy in any other way.




K. State laws.

If any terms of this policy conflict with state law, we’ll comply with that law.

L. Limitations on use.

To be covered under this policy the aircraft must be owned, maintained or used only for the “aircraft use” described on the Coverage Summary Page and flown only by a pilot or pilots described there. The aircraft must also be registered under an Airworthiness Certificate issued by the Federal Aviation Administration (FAA), or its foreign equivalent. While your aircraft is in the care, custody or control of an Approved Repair Station for the purpose of maintenance or repair, the “Pilots” section appearing on the Coverage Summary Page will not apply, provided you do nothing which would affect the “Rights against third parties” section of this policy.

M. If you have other insurance.

If you have other insurance covering a loss that's also covered by this policy, this insurance shall be excess insurance. This section does not apply to any insurance purchased as specifically excess of this insurance. Excess insurance is insurance which becomes effective only when all other valid and collectible insurance covering the loss has been exhausted. Other insurance includes any retained limit under any self insurance or deductible program you have established. If any other insurance covering the loss is written through the Aviation Managers, the “Limit of Coverage” that applies under this policy will be reduced by the “Limit of Coverage” under the other insurance.

N. Our right of recovery.

If we pay a claim under this policy, we will take over your right to recover that amount from any other person or organization. You agree to cooperate with us and not do anything that will interfere with our chances of recovery.

O. Extension of Coverages for “Insured Owner’s” Under Policy

The Aircraft Liability and Aircraft Physical Damage Coverages provided for “EJM” and each “Insured Owner” are extended to any aircraft used by them which is insured under this policy.

P. Invalidation

No act or omission by any person, including an Insured, shall void Coverage under this policy for any other Insured, provided such other Insured did not consent to or acquiesce in such act or omission.

Q. Reports and Particulars

An inadvertent delay, error, omission or failure to furnish reports to the Aviation Managers, as required by this policy, will not operate to void your Coverage, provided that such error, omission or failure is rectified as soon as possible after discovery.

However, this section does not apply to your obligation to promptly notify and report to the Aviation Managers any occurrence, loss, claim, suit filed, or any other legal action, as required by this policy.




R. Limited Liability Company (LLC)

If you are shown on the Coverage Summary Page or by endorsement to this policy as a “Limited Liability Company” (LLC) you are covered. The following are also covered. Single-member Limited Liability Companies:

• Your employees are covered but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business.

Limited Liability Companies other than Single-member Limited Liability Companies:

• Your members are also covered, but only with respect to the conduct of your business.

• Your managers are covered, but only with respect to their duties as managers. • Your employees are covered but only for acts within the scope of their

employment by you or while performing duties related to the conduct of your business.

S. Assignment/Bankruptcy/Insolvency

An assignment of interest under this policy shall not bind the Companies until their consent is endorsed hereon; however, the bankruptcy or insolvency of the “Named Insured” will not relieve the Companies of their obligations under the policy absent an order of the appropriate court or regulatory authority.



II. YOUR LIABILITY COVERAGE

Following is a description of your Coverage under this policy for liability claims made against you. The “Limits of Coverage” you have purchased are shown on the Coverage Summary Page.

A. Combined Liability Coverage for bodily injury and property damage.

1. Your Aircraft Liability Coverage for aircraft shown on your “Insured Owner’s

Interest Endorsement.” We will pay claims, for which you are legally liable to pay as damages, for bodily injury, mental anguish, personal injury, damage to someone else’s property and, damages, including loss of support or loss of use of property, resulting from the ownership, maintenance or use of the aircraft, including claims arising from the serving of alcoholic beverages on board the aircraft. But we won’t pay more for all injuries and damage in any one occurrence than the “Limits of Coverage” shown on the Coverage Summary Page.

This Coverage includes bodily injury, mental anguish and personal injury to persons or passengers. “Passenger” means any person in, on, or boarding the aircraft for the purpose of riding or flying therein or alighting therefrom after a flight or attempted flight therein.

The term “mental anguish” means the mental sensation of pain, distress, fright or anxiety, but only when the result of an occurrence covered under this policy.

As respects personal injury, the most we will pay for all occurrences during the policy period is the “Aggregate Limit of Coverage” shown on the Coverage Summary Page. “Personal injury” means one or more of the following offenses: false arrest, detention or imprisonment, malicious prosecution, damage to someone’s reputation or violation of someone’s right to privacy, caused by publication or public statement; incidental medical malpractice error or mistake by a physician, surgeon, nurse, medical technician or other person performing medical services but only for or on your behalf in the provision of emergency medical relief; entering someone’s residence, place of business or other property, or evicting someone from their home or place of business when you had no right to do so; or discrimination against someone on racial or religious grounds, where the law permits us to cover you for this type of discrimination committed by you or at your direction.

2. “Insured Owner’s” Liability Coverage for bodily injury and property damage for

airport premises. We will pay claims, for which an “Insured Owner” is legally liable to pay as damages, for bodily injury, mental anguish, personal injury and damage to someone else’s property resulting from your maintenance or use of airport premises, other than airport premises that an “Insured Owner” owns or leases exclusively, and/or operate themselves. An “Insured Owner” is also covered for use of mobile equipment which you own or lease under written agreement, while it is on airport premises you own, maintain or use. “Mobile equipment” means a land vehicle (including machinery and/or apparatus attached to it), whether or not it’s self propelled, used exclusively for the maintenance or handling of aircraft or airport premises, provided it is:

a. not subject to motor vehicle registration; and,

b. designed for use principally off public roads; and,

c. used exclusively on airport premises owned by or rented to

you, including roadways immediately adjoining.

This Coverage for airport premises is in addition to the Limits of Coverage for “Combined Liability Coverage for bodily injury and property damage” shown on the Coverage Summary Page and is in the same amount as the Limit of Coverage shown on the “Insured Owner’s Interest Endorsement”.


YOUR LIABILITY COVERAGE


3. Non-Owned Aircraft Liability Coverage. We will pay claims, which you are legally liable to pay as damages, for bodily injury, mental anguish, personal injury and damage to someone else’s property resulting from the use of a non-owned aircraft by “EJM” or an “Insured Owner” which is not owned in whole or in part by “EJM” or an “Insured Owner”, but only while the non-owned aircraft is operated by or at the direction of “EJM”.

This Coverage does not apply to aircraft covered elsewhere in this policy.

You may use the non-owned aircraft for the purposes shown on the Coverage Summary Page of this policy.

You are insured up to the limits shown on the “Insured Owner’s Interest Endorsement” under your “Combined Liability Coverage for bodily injury and property damage” each occurrence.

Claims we won’t cover. Under this section we won’t cover

• damage to property you own, rent, control or transport, except the non-owned aircraft you are using;

• claims arising out of the use of any aircraft products you manufacture, sell, handle or distribute. However, this will not apply to the aircraft you are using;

• claims arising from aircraft operated under an aircraft management agreement with “EJM”;

• claims arising out of the use of any aircraft which has a seating capacity, including crew, in excess of sixty (60);

• any aircraft you or an “Insured Owner” owns in full or in part.

You agree to tell us whenever you use an aircraft you don’t own, lease or manage for more than thirty (30) consecutive days.

4. Property Damage to Non-Owned Aircraft. We will pay claims, which you are

legally liable to pay as damages, arising from physical damage, which you have caused, to a non-owned aircraft while being used by “EJM” or an “Insured Owner” which is not owned in whole or in part by “EJM” or an “Insured Owner”, but only while the non-owned aircraft is operated by or at the direction of “EJM”.

This Coverage does not apply to aircraft covered elsewhere in this policy.

You may use the non-owned aircraft for the purposes shown on the Coverage Summary Page.

Your Coverage under this section for “Liability Coverage for physical damage for non-owned aircraft” is $80,000,000 each occurrence.

We won't cover claims arising out of the use of any aircraft product you manufacture, sell, handle or distribute, however, this won't apply to the aircraft you are using. We won’t cover damage to property you own, rent, control or transport, except the non-owned aircraft you are using.

5. Ground Hangarkeeper’s Liability Coverage. We will pay claims, which an

“Insured Owner” is legally liable to pay as damages, for damage to someone else’s aircraft or aircraft parts, which you don’t own, lease, rent or operate in your business, which results from direct damage, including loss of use, while aircraft or aircraft parts are in your care, custody or control as a bailee for storage, repair, servicing or safekeeping, but only while the aircraft is not in flight, and only while the aircraft or aircraft parts are on your airport premises.




The Limit of Coverage for damage to someone else’s aircraft or aircraft parts, under this section, is in addition to the Limits of Coverage for Combined Liability Coverage for bodily injury and property damage shown on the “Insured Owner’s Interest Endorsement.” The most we will pay for any claim or loss is $80,000,000.

6. Cargo Liability Coverage. We will pay claims, which you are legally liable to pay as

damages, arising from carrying cargo you don’t own, lease, rent or use in your business. Coverage only applies while the cargo is being transported by an aircraft covered under this policy; or while on premises you own, lease, rent or use and only while it is in your care, custody or control.

The “Limit of Coverage” under this section for damage to someone else’s property is $6,000,000 each occurrence and it is in addition to the “Limits of Coverage” shown on the Coverage Summary Page.

Claims we won’t cover. Under this section, we won’t cover:

a. any loss of market value because of any delay whether or not

this delay is caused by an occurrence covered under this policy;

b. any consequential loss of any nature, however, we will pay for

the cost of reconstruction of data contained in documents carried;

c. any loss caused by you, your employees, directors or agents

due to infidelity;

d. any loss caused by wear, tear, deterioration, freezing, or due to the perishable nature of the property;

e. any loss or damage to any accounts, bills, jewelry, currency,

deeds, evidence of debt, letters of credit, passports, documents, money, notes, securities, airline or other tickets;

f. any physical loss of or damage to cargo which is considered

dangerous or harmful and for which you must secure a special permit or waiver from Federal, State, County or Municipal authority;

g. any cargo which disappears mysteriously.

7. Coverage for bodily injury and property damage for sale of the “Insured

Owner’s” owned aircraft or parts. We will pay claims, for which an “Insured Owner” is legally liable to pay as damages, for bodily injury, mental anguish and damage to someone else’s property resulting from the sale of the “Insured Owner’s” aircraft or from the relinquishment of an aircraft leased exclusively to an “Insured Owner” and described in the “Insured Owner’s Interest Endorsement,” or from the sale of the “Insured Owner’s” owned aircraft parts to someone else.

In addition, we will pay claims, for which an “Insured Owner” is legally liable to pay as damages, for bodily injury, mental anguish and damage to someone else's property resulting from the sale of aircraft equipment, maintenance or services to someone else, on a non-profit basis.

“Insured Owners” are covered for claims arising out of an accident causing bodily injury or property damage which occurs during the policy period whether or not said “Insured Owner” is at the time of the occurrence, still operating under an aircraft management agreement with EJM. This Coverage for sale of aircraft, aircraft parts, equipment, maintenance or services is in addition to the Limits of Coverage for Combined Liability Coverage for bodily injury and property damage shown on the Coverage Summary Page, and is in the same amount as the highest Limit of Coverage for the “Insured Owner’s” aircraft.




8. Reimbursement of emergency expenses. We will reimburse you for expenses incurred for the use of foam on a runway or your aircraft, or for fire, crash control and rescue. But we won’t pay more than $6,000,000 in any one occurrence. We will also reimburse you for expenses incurred by you for search and rescue operations which have been initiated by you and which have the prior approval of the Aviation Managers, but only after search and rescue operations have been discontinued by the governmental authority in charge of these operations. But we won’t pay more than $6,000,000 in any one occurrence. Coverage under this section is in addition to and not part of the “Limits of Coverage” shown on the Coverage Summary Page.

9. Family Assistance Coverage. We will offer on your behalf and at the request of the

“EJM”, all reasonable “Family Assistance Expenses” that a spouse, children, brothers, sisters or parents of a passenger incur within one (1) year from the date of an occurrence involving the fatality of a passenger. But, the aircraft involved in the occurrence must have been used by you or with your permission. “Family Assistance Expenses” are defined as the necessary and reasonable costs of transporting family members to and from the site of the occurrence, lodging near the site of the occurrence, and grief counseling.

The Coverage is in addition to the Limits of Coverage for “Combined Liability

Coverage for bodily injury and property damage” shown on the Coverage Summary Page.

We will pay up to $250,000 per occurrence.

10. Fire Legal Liability Coverage. Your “Combined Liability Coverage for bodily injury

and property damage” is expanded to include claims for loss or damage to buildings occupied as hangars or hangars and offices, which you don’t own, but that you rent, lease, control or occupy, with permission of the owner, arising out of any one fire, for which you are legally liable to pay as damages. Coverage will apply only to those buildings described in the “Schedule” below.

Limits of your Coverage. For Coverages provided by this section, you are insured up to the limits shown below. These Limits of Coverage are part of and not in addition to the “Limits of Coverage” shown on the Coverage Summary Page.

Coverage Limits of Coverage

Damage to someone else’s

Property, as scheduled below $1,000,000 Each Occurrence

Schedule

Description of Property Location of Property As may be necessary Premises necessary and

incidental to operations of the “Named Insured”.

All in the care, custody or control of the “Named Insured”.

For the purposes of this section, the “Property damage’ section under “Liability claims we won’t cover” is changed to read as follows:

“Property damage. Except as provided for in this section, we won’t cover damage to any property you or any other person or organization, legally responsible for the use of your aircraft, owns, rents, controls or transports, including claims for loss of use and consequential damage.”




11. Liability Coverage for Automobiles on Airport Premises. Your “Coverage for bodily injury and property damage for airport premises” section of “Your Liability Coverage” is extended to include claims for bodily injury, mental anguish, personal injury and damage to someone else’s property resulting from an “Insured Owner’s” ownership, maintenance or use of any “automobile” owned by, rented to, loaned or leased to an “Insured Owner”, but only while on airport premises an “Insured Owner” owns, maintains or uses. An “Insured Owner” is only covered for claims which occur during an “Insured Owner’s” policy period. This coverage for use of “automobiles” is part of and not in addition to the Limits of Coverage for Combined Liability Coverage for bodily injury and property damage shown on the Coverage Summary Page, and is in the same amount shown for one aircraft.

We won’t cover, under this endorsement, any claim or loss arising out of an occurrence which happens while the “automobile” is off airport premises or while on any public road or highway.

“Automobile” means a land motor vehicle or trailer, subject to motor vehicle registration, designed for travel on public roads. An “automobile” does not include “mobile equipment”. Coverage under this endorsement is limited to use exclusively on airport premised owned by, rented to or used by you.

. 12. Garagekeeper’s Liability Coverage. Coverage for Garagekeeper’s Liability for

damage to automobiles and trucks licensed for use on public roads, not owned, leased, rented or operated by an “Insured Owner”.

We will pay claims for damage to automobiles and trucks licensed for use on public roads not owned, leased, rented or operated by an “Insured Owner” including their contents, which are in an “Insured Owner’s” custody or physical control for storage or safekeeping while on an “Insured Owner’s” airport premises.

The Limit of Coverage for damage to automobiles and trucks licensed for use on public roads, not owned, leased, rented or operated by an “Insured Owner” including their contents, under this Coverage, is part of and not in addition to the Limits of Coverage for Combined Liability Coverage for bodily injury and property damage shown on the Coverage Summary Page, and is in the amount shown below:

Limit for each automobile $ 500,000 Limit for each occurrence $ 500,000

We will apply a deductible of $Nil to each claim under this Coverage.

B. Who’s covered.

1. Subject to the terms and conditions of this policy, "Your Liability Coverage" provides

coverage to: a. you; b. your employees while they are performing duties as part of their work for

you;

c. any person or organization that:

(i) is using or riding in your aircraft with your permission; or (ii) is legally responsible for the aircraft; and




d. any person or organization who you agree to provide liability Coverage for,

provided you notify us within thirty (30) days of such agreement. However, inadvertent failure to submit copies of contracts or agreements will not operate to void your Coverage, provided you do so as soon as practicable after you have determined one exists. Any additional premium required will be determined and agreed upon at that time; or

e. any “Insured Owner” who is operating under an “Aircraft Management

Agreement” with “EJM”, provided “EJM” is required by the Management Agreement to furnish insurance, including any individual, partnership, corporation, or affiliated company of the “Insured Owner”, as well as its subsidiaries and subsidiaries thereof. Said “Insured Owner” shall be considered a “Named Insured” under this policy; or

f. any charter customer.

2. Each person or organization listed in subparagraph B.1. above is covered separately. But we won’t pay more for all injuries and damage in any one occurrence than the “Limits of Coverage” shown on the Coverage Summary Page.

C. Who’s not covered.

"Your Liability Coverage" does not provide coverage to any person or organization, or an agent or employee thereof, regardless of their inclusion in subparagraphs B. 1. c., d., e. or f. above,

(a) that manufactures, sells, distributes, designs, or modifies

aircraft, aircraft engines or aircraft components or accessories;

(b) that owns, operates, or is employed by an aircraft repair or

maintenance shop, an aircraft sales agency, an aircraft lease, charter or rental service, a flying school, a flying service, or a pilot service;

(c) that owns or operates any airport, hangar, or other aviation

facility; or

d) whose services are paid for, contracted for, or solicited from with respect to any of the operations or activities listed in paragraphs (a), (b) or (c) of this subparagraph 1., or that acts as an independent contractor in connection with such operations or activities,

if the claim or injury arises out of any of the operations or activities listed in paragraphs (a), (b) or (c) of this subparagraph 1.

D. Supplementary Payments.

All payments described in this section are in addition to the applicable “Limits of Coverage” shown on the Coverage Summary Page.




1. Defending suits. We will defend any liability suit brought against you for bodily injury, mental anguish, personal injury or damage to the tangible property of others to which this insurance applies, even if the suit is groundless. We will also pay all costs of your defense, including investigation and court costs. We may investigate, negotiate and settle any claim or suit, if we decide this is appropriate. But, we won’t be obligated to pay any claim or judgment or to defend any suit after your “Limit of Coverage” has been exhausted by payment of judgments or settlements.

2. Bonds. We will pay premiums for appeal bonds and bonds to release

any property and personal belongings that are being held as security. We will also pay up to $50,000 for any bail bond you may require because you violated a law or regulation during the policy period. However, we are not under any obligation to apply for or furnish these bonds.

3. Interest. We will pay prejudgment interest awarded on that part of the

judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer.

We will also pay 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.

These payments will not reduce the “Limits of Coverage” shown on the

Coverage Summary Page. 4. Expenses. We will reimburse you for all reasonable expenses you incur

while helping us at our request, including actual loss of earnings or salaries of your employees, up to $1,000 a day because of time off from work. We will pay all medical and surgical expenses you incur while providing immediate medical treatment at the time of an accident or occurrence.

5. Suits for liability payment. No suit or other legal action to recover

payment under this policy can be brought unless you have complied with all its terms and a court has entered a judgment against you.

E. Liability claims we won’t cover:

1. Aircraft. We won’t cover claims for damage to your aircraft under “Your

Liability Coverage” section of this policy.

2. Assumed liability. Other than an airport contract you sign with a governmental body so you may use an airport, we won’t cover any liability you assume under any contract or agreement which:

a. is with or for the benefit of passengers or their heirs, or

b. is with or for the benefit of any manufacturer of your aircraft

or any of its parts, or

c. applies to damage which is the result of any major alteration or repair, or

d. is agreed to orally by you and another party, unless the

agreement is an airport contract which is required by a governmental body for you to use an airport.




However, we will cover injury to your employees while they’re actually doing work for you, if you have assumed liability for such injury under a written contract or agreement covered in this section.

The “Rights against third parties” section of this policy shall not apply to any written contract or agreement except any contract or agreement with a person or organization which has been entered into after a loss.

You must submit a copy of any contract or agreement, other than an airport contract, to the Aviation Managers within thirty (30) days after your insurance department receives it, thereafter we have ten (10) days to review and either accept or decline it. However, inadvertent failure to submit copies of contracts or agreements will not operate to void your Coverage, provided you do so as soon as practicable after you have determined the contract exists. All contracts reported and approved prior to the effective date of this policy are automatically covered.

This section and “Rights against third parties” section of this policy will not apply to any oral or written agreement pertaining to temporary storage or minor servicing of your aircraft while away from your home base.

3. Intentional injury. We won’t cover claims for intentional injuries or

property damage caused by you or any other person or organization at your or their direction, except to prevent dangerous interference with the operation of an aircraft.

4. Workers’ compensation. We won’t cover any claim that’s covered

under a workers’ compensation, unemployment compensation, disability benefits law or similar law. Nor will we cover claims for injury to your or any other person’s or organization’s employees while they’re actually doing work for you or them, except for liability you or they assume under a written contract or agreement you or they sign with a governmental body so you or they may use an airport.

5. Property damage. We won’t cover damage to any property you or any

other person or organization legally responsible for the use of your aircraft owns, rents, leases, manages, controls or transports, including claims for loss of use and consequential damage, except aircraft covered in your “Ground Hangarkeeper’s Liability Coverage,” your “Property Damage to Non-Owned Aircraft” and your “Cargo Liability Coverage” sections. We will pay up to $50,000,000 in any one occurrence during your policy period for damage to hangars or their contents, other than aircraft, which you or they don’t own. We will also cover the personal effects and baggage of each passenger and crew member in any one occurrence for up to $500,000.

6. Personal injury. We won’t cover personal injury:

a. sustained by any person or organization shown on the

Coverage Summary Page as the “Named Insured,” however, this shall not apply to an “Insured Owner” of an aircraft managed by “EJM”; or

b. arising from any publication or utterance which first

occurred before the effective date of this policy; or

c. arising from any publication or utterance made by any person or organization at their direction, knowing the publication or utterance to be false; or




d. arising out of any advertising by any person or organization described in the “Who’s covered” section of this policy; or

e. which does not arise directly from your ownership,

maintenance or use of your aircraft; or

f. sustained by any person arising directly or indirectly out of applying for, termination of, or related to their employment, including coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, discrimination or other employment related practices, acts or omissions, by any person or organization described in the “Who’s covered” section of this policy; or

g. arising from liability assumed by any person or

organization described in the “Who’s covered” section of this policy; or

h. arising out of the willful violation of a penal statute or

offenses committed by or with the knowledge or consent of any person or organization described in the “Who’s covered” section of this policy.

7. Bodily injury. We won’t cover bodily injury arising out of or as a

consequence of applying for, termination of, or employment by any person or organization described in the “Who’s covered” section of this policy. We won’t cover bodily injury arising from coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, discrimination or other employment related practices, policies, acts or omissions.

8. Air traffic control operations. Your Coverage does not apply to bodily

injury, mental anguish, personal injury or property damage arising out of Air Traffic Control Operations conducted by you or your agent.

F. Financial Responsibility Laws.

If this policy is certified as proof of insurance under any aircraft financial responsibility law, we will pay up to the limits of liability required by such law. But we won’t pay more than the “Limit of Coverage” that applies under this policy. You agree to reimburse us for any amount we are required to pay under the law which is in excess of what we would otherwise have paid under this policy.



III. YOUR AIRCRAFT PHYSICAL DAMAGE COVERAGE

We will cover you against risk of physical loss of or accidental damage to your aircraft both while it’s in flight and while it isn’t in flight. A fixed wing aircraft is in flight from the time it moves forward for takeoff and until it completes its landing run. A rotorcraft is in flight while its rotors are in-motion as a result of engine power or autorotation.

We will consider an aircraft to be lost in flight if it disappears after takeoff and isn’t located or its whereabouts are not reported within thirty (30) days. If your aircraft is stolen, we have the right to return stolen property to you, with payment for any damage resulting from the theft of the aircraft, at any time before we make payment for the loss.

A. Automatic increased value - additional equipment or modification for “Your

Aircraft Physical Damage Coverage.”

If “EJM” adds equipment to or modifies your aircraft after the effective date of your Coverage, this policy’s limit of “Aircraft Physical Damage Coverage” will increase by the amount actually paid for the additional equipment or modification. “EJM” agrees to advise us within sixty (60) days after the completion of the addition of equipment or modifications. And, you also agree to pay the additional premium due for the increased value of your aircraft. We won’t, however, automatically cover an increased value of more than twenty-five percent (25%) of your limit of “Aircraft Physical Damage Coverage” and in no event shall the Aircraft Physical Damage limit exceed $80,000,000.

B. What we will pay.

1. Total loss. If your aircraft is a total loss, we will pay “EJM” the amount

shown on the “Insured Owner’s Interest Endorsement” for your Aircraft Physical Damage Limit, less any deductible that applies.

We will consider your aircraft a total loss when the cost of repairs equals or exceeds the limit of “Your Aircraft Physical Damage Coverage” shown on the “Insured Owner’s Interest Endorsement.” Disappearance or theft of the entire aircraft will be considered a total loss.

We will return any unearned Aircraft Physical Damage premium to “EJM”. We will compute what we’ve earned based on the percentage of the policy period that has elapsed at the time the aircraft becomes a total loss. All “Your Aircraft Physical Damage Coverage” for the aircraft will end as soon as we make payment, unless another aircraft is also insured for Aircraft Physical Damage Coverage under this policy.

2. Partial loss - you make repairs. If the aircraft is only partially damaged

and “EJM” makes repairs, we will reimburse “EJM” for the following items, less any deductible that applies:

a. the cost of necessary material and parts of similar kind

and quality;

b. wages paid at the current straight-time rate, at the place of repair, plus one hundred fifty percent (150%) of this amount to cover supervision and overhead.

3. Partial loss - someone else makes repairs. If your aircraft is damaged

and the repairs are made by someone else, we will pay “EJM” for the net cost to you of repairing your aircraft with material and parts of similar kind and quality, less any deductible that applies. But we won’t pay overtime charges.


YOUR AIRCRAFT PHYSICAL DAMAGE COVERAGE


In addition, whether you make repairs or someone else makes repairs, we will pay the cost of transporting, by the least expensive means, damaged parts or the aircraft from the site of the loss to the most practical place where repairs can be made; and, the aircraft back to the place of the loss, or your home airport, whichever is closer.

The words “similar kind and quality” mean similar kind and quality, less an allowance for physical deterioration and depreciation. If repair or replacement of damaged parts results in better than similar kind and quality, you must pay the amount of the betterment.

C. Your not in-motion deductible.

The not in-motion deductible shown on the “Insured Owner’s Interest Endorsement” will apply to each loss to each aircraft while it’s not in-motion. No deductible will apply, however, to any loss to your aircraft caused by: (1) fire, explosion, lightning, theft, robbery, vandalism; or (2) an accident involving an aircraft we insure that’s owned by someone else.

D. Your in-motion deductible.

The in-motion deductible shown on the “Insured Owner’s Interest Endorsement” will apply to each loss to each aircraft while it is in-motion. An aircraft is in-motion whenever it is intentionally moving on the ground or in flight as a result of engine power or autorotation.

This means you will first pay an amount equal to the deductible. We will then pay the remainder of your loss up to the limit of “Your Aircraft Physical Damage Coverage.”

No deductible will apply, however, to any loss to your aircraft caused by: (1) fire, explosion, lightning, theft, robbery, vandalism; or (2) an accident involving an aircraft we insure that’s owned by someone else; or (3) accidental damage to your aircraft while it’s being transported after being dismantled.

E. Emergency landing.

If a pilot shown on the Coverage Summary Page is forced to make an emergency landing away from an airport and there is no physical damage to your aircraft, we will pay the cost of transporting your aircraft to an airport nearest the forced landing site, by the least expensive means. But we won’t pay more than the limit of “Your Aircraft Physical Damage Coverage.”

F. Trip interruption expense.

If your aircraft is damaged, and this policy covers the loss, we will reimburse the “Insured Owner” or their guests for reasonable expenses incurred for food, lodging and travel of passengers, excluding crew, from the location where the damage occurred to the intended final destination, or to the place where the aircraft originally departed, if the trip is discontinued. We will pay up to $150,000 for each passenger, excluding crew, in any one occurrence. You will be required to provide the Aviation Managers with duplicate invoices for all covered expenses within ninety (90) days from the date you incur the expenses.

We won’t cover any expenses under this section for food, lodging or travel of passengers unless these expenses are incurred as a result of damage to your aircraft which is covered under “Your Aircraft Physical Damage Coverage.” Coverage under this section is in addition to and not part of the “Limits of Coverage” shown on the Coverage Summary Page.

Coverage applies only and separately to each aircraft shown on the “Insured Owner’s Interest Endorsement” attached to this policy.




G. Spare engines and parts Coverage.

In addition to the Limit of Coverage for “Your Aircraft Physical Damage Coverage,” we will cover you against risk of physical loss or damage to spare engines and aircraft parts which are owned by you or for which you are legally responsible and which are intended to be used for your aircraft described on the “Insured Owner’s Interest Endorsement.” But we won’t pay more than $15,000,000 in any one occurrence. All of the terms and conditions of this policy which apply to “Your Aircraft Physical Damage Coverage” also apply to your spare engines and parts Coverage. We won’t cover loss of spare engines or parts which disappear mysteriously. Coverage under this section is in addition to and not part of the “Limits of Coverage” shown on the Coverage Summary Page.

H. Extra expense Coverage.

If your aircraft is damaged, and “Your Aircraft Physical Damage Coverage” covers the loss, we will reimburse you for the “extra expense” that you incur from chartering, leasing or renting a “replacement aircraft,” while your aircraft is out of service while being repaired.

“Extra expense” means that portion of the actual cost that you incur from chartering, leasing or renting a “replacement aircraft” which exceeds the cost you would have incurred had you operated your own aircraft which was damaged.

A “replacement aircraft” means an aircraft of similar or lesser size, weight and performance.

We will not cover “extra expense” after completion of repairs to your aircraft; or, if your aircraft is a total loss.

You should notify the Aviation Managers prior to incurring any “extra expense.” Also, you will be required to provide the Aviation Managers with invoices and other documentation to support the claim for all covered “extra expenses” within ninety (90) days of the date you incur the “extra expenses.” The most we will pay for all “extra expense” is $3,500,000.

Coverage for “extra expense” will only apply to the period from the date of the loss or accidental damage to the one hundred twentieth (120

th) day following the date of

the loss or accidental damage.

Coverage for “extra expense” is in addition to and not part of “Your Aircraft Physical Damage Coverage.”

If “Your Aircraft Physical Damage Coverage” is subject to a deductible, the amount of the deductible shown on the “Insured Owner’s Interest Endorsement” will apply once to the physical damage to your aircraft and the “extra expense” when combined together as one claim.

This Coverage shall not apply to claims paid under your “Trip interruption expense” Coverage section of “Your Aircraft Physical Damage Coverage.”

I. Extra expense Coverage for temporary replacement parts.

If your aircraft is damaged and “Your Aircraft Physical Damage Coverage” covers the loss, we will reimburse you for the actual costs that you incur to lease or rent any temporary replacement parts, that exceeds the cost you would have incurred had you utilized your own parts, including the actual cost of installation, removal and transportation of such temporary replacement parts for the period required for actual repair of the original damaged part or parts. You should notify the Aviation Managers prior to incurring any costs for temporary replacement parts. The most we will pay for all costs under this Coverage is $5,000,000 for any one loss.




Coverage for “extra expense for temporary replacement parts” is in addition to and not part of “Your Aircraft Physical Damage Coverage.”

You should notify the Aviation Managers prior to incurring any “extra expense.” Also, you will be required to provide the Aviation Managers with invoices and other documentation to support the claim for all covered “extra expenses” within ninety (90) days of the date you incur the “extra expenses.”

If “Your Aircraft Physical Damage Coverage” is subject to a deductible, the amount of the deductible shown on the “Insured Owner’s Interest Endorsement” will apply once to the physical damage to your aircraft, “extra expense” and, if applicable, “extra expense for temporary replacement parts” when combined together as one claim.

J. Physical Damage Coverage for Mechanics’ Tools. In addition to the Limit of

Coverage for “Your Aircraft Physical Damage Coverage” we will cover you for all risks of physical loss of or damage to “Mechanics’ Tools” which are owned by full-time employee mechanics and which are in your care, custody or control.

“Mechanics’ Tools” are defined as tools and equipment used for maintenance or repair of aircraft or aircraft service equipment. “Mechanics’ Tools” are covered for loss of or damage to “Mechanics’ Tools” that take place during your policy period while the “Mechanics’ Tools” are in your care, custody or control. You are insured up to the Limit shown below. Coverage Limits of Coverage All risks of physical loss of or damage to $100,000 Each Occurrence “Mechanics’ Tools” including “Mechanics’ Tools” in transit. We will apply a deductible of $Nil to each claim for loss or damage covered under this coverage. The “Limits of Coverage” shown above is in addition to the “Limits of Coverage” shown on your Coverage Summary Page. What we will pay. If the “Mechanics’ Tools” are damaged and are a total loss, we will pay the amount required to replace the “Mechanics’ Tools” with mechanics’ tools of similar kind and quality. If the “Mechanics’ Tool or Tools” are partially damaged, we will pay the net cost which must be paid to repair the damaged tool or tools, as evidenced by receipts for the repair. “Similar kind and quality” means similar kind and quality, less an allowance for physical deterioration and depreciation. In no event will we pay more than the cost to replace the damaged tool or tools’ and, in the event of a total loss, the most we’ll pay is the “Limit of Coverage” shown above, less any applicable deductible. Payments for loss covered under this endorsement will be made to the owner of the “mechanics’ tools”. Claims we won’t cover. Although this section gives you all risks of physical damage coverage for “mechanics’ tools”, there are a few claims we won’t cover in addition to the “Aircraft damage we won’t cover”. We also won’t cover loss or damage:

• caused when someone with a legal right to possess the “Mechanics’ Tools”, embezzles or converts them under a lease, rental agreement, conditional sale, mortgage or other legal agreement governing the use, sale or lease of property;




• arising out of mysterious disappearance or unexplained loss or shortage disclosed upon taking inventory.

K. What you must do.

You agree to give us a sworn Proof of Loss Statement within ninety (90) days of the loss. You also agree to allow us or anyone we designate to question you under oath and to show us the damaged property and any records you have to prove the loss.

L. When we will pay.

We will pay for a loss to your aircraft within thirty (30) days from the time agreement is reached on the amount of the loss, provided you have complied with the requirements of this policy. We will deduct any premiums you owe and other debts you have with us.

M. Suits for aircraft physical damage payments.

No suit or other legal action to recover payment can be brought under this policy unless you have complied with all of its terms and the action is brought within one (1) year after the loss or accidental damage.

N. Rights against third parties.

This insurance is for your benefit alone and not for any other person or organization. Except for what you agree to do under an Airport Contract, you promise not to do anything that will take away our right to collect for damages caused by others.

O. Automatic reinstatement.

If your aircraft is damaged, we will reduce the limit of insurance you have on your aircraft by the amount of damage. Once repairs begin, we will increase your limit of insurance by the value of the completed repairs until the original limit of insurance on your aircraft is restored or this policy expires, whichever happens first.

P. Arbitration of disputes.

If we can’t agree with “EJM” on the amount of loss to your aircraft, the following procedure will be used to settle the dispute:

1. “EJM” can request in writing that the dispute be submitted for arbitration.

We can do the same.

2. Each will then select an appraiser and will inform the other of that choice within twenty (20) days of the initial notification.

3. The appraisers will select a competent and impartial umpire. If the

appraisers can’t agree on an umpire within fifteen (15) days, a judge of the state in which the property is located can appoint an impartial umpire, if asked to do so by you or us.

4. Each appraiser will appraise the loss for each item. If they don’t agree,

they will submit their differences to the umpire. Agreement by two of the three will decide the amount of the loss.

You will then pay your appraiser and we will pay ours. Any other costs of the appraisal and the umpire will be divided equally.

Q. Salvage.

If an aircraft covered under “Your Aircraft Physical Damage Coverage” is damaged, you must do all you can to protect it from further loss. If you don’t, we won’t be responsible




for further loss to the aircraft. We will pay all reasonable expenses you incur in protecting your aircraft from further loss.

If we pay you for a total loss, we can elect to take over the salvage as our property. You cannot, however, merely abandon the damaged property to us. If we decide to take the salvage, we can sell it or do whatever else we want with it.

R. Aircraft damage we won’t cover:

1. Tires. We won’t cover loss or damage to the tires of your aircraft unless

caused by theft, vandalism or malicious mischief; or caused directly by other physical damage covered by this policy.

2. Wear and tear. We won’t cover loss or damage to your aircraft caused

by and confined to wear and tear, deterioration, freezing, mechanical or electrical breakdown or failure. Damage caused by breakdown, failure or malfunction of any engine component, accessory or part will be considered mechanical breakdown of the entire engine, and is not covered.

Loss or damage to electronic or electrically driven equipment caused by and confined to electrical power surge, failure or malfunction is not covered.

Damage to an engine caused by heat from its operation, attempted operation or shutdown will be considered wear and tear, and is not covered.

Damage to a turbine engine caused by an object which is not part of the engine or its accessories is foreign object damage. If the damage is caused by a single incident of sufficient severity to require immediate repairs in compliance with the requirements of the manufacturer, it is covered. However, if the damage is discovered at the time of inspection or overhaul, the damage must have occurred during the policy period.

Damage to engines covered by this policy is subject to “Your in-motion deductible.”

3. Consequential damage. We will not cover any loss of use or any

residual depreciation in value of your aircraft, either before or after repairs have been made.

4. Embezzlement. We won’t cover loss or damage to your aircraft caused

when someone with a legal right to possess the aircraft embezzles or converts it under a lease, rental agreement, conditional sale, mortgage, or other legal agreement governing the use, sale or lease of property, other than dry-lease aircraft exchanges, aircraft substitution arrangements, or other aircraft interchange agreements with other “Insured Owners”.

S. Lienholder’s or Lessor’s Interest Coverage.

This section protects the interest of the lienholder or lessor of the aircraft. Should you do anything which makes your Coverage invalid, we will still make a payment to that lienholder or lessor to the extent Coverage would otherwise apply.

Who’s protected. The Coverage under this section is only for the benefit of the lienholder or lessor.

Whom we will pay. Payments for loss covered under your Aircraft Physical Damage will be made to “EJM”, the “Insured Owner” and any lienholder or lessor, as their legal interest may appear, for their respective aircraft. However, the Physical Damage




Coverage shall not apply to any loss or claim arising out of the sole negligence of the lienholder or lessor.

What we will pay. If we claim your Coverage is invalid, we will pay the lienholder or lessor, as their legal interest may appear for their respective aircraft, either the amount of damages or the amount of the lien, whichever is less. The most we will pay is the limit of “Your Aircraft Physical Damage Coverage,” less any deductible which applies. We won’t, however, make any payment to the lienholder or lessor unless and until their interest in the aircraft is impaired and you are in default.

Determining the amount of lien. The amount of the lien will be reduced by any installments more than thirty (30) days overdue and by any charges not earned by the lienholder or lessor at the time of the accident causing loss of or damage to the aircraft.

If we make any payment to a lienholder because “EJM” and/or an “Insured Owner” invalidated this policy, we will be entitled to all the rights the lienholder or lessor has against “EJM”, and/or the “Insured Owner” through the lien or lease. The lienholder or lessor agrees to transfer and assign to us all legal documents they hold regarding the collateral, security or rights of recovery they have with “EJM” and/or the “Insured Owner” regarding loss or damage to the aircraft. “EJM” and/or the “Insured Owner” agree to pay us back the full amount of the payment.

What's not covered. We won't cover conversion, embezzlement or secretion of the aircraft by “EJM” or the “Insured Owner”.

What the lienholder or lessor must do. If “EJM” doesn't pay the premium due for the aircraft scheduled below, the lienholder or lessor agrees to pay us all premium due for the aircraft, but only if the lienholder wants the coverage under this policy to continue in force. If you don’t give us a proof of loss within the time required, the lienholder agrees to give us one within sixty (60) days after the required time.

If we cancel your policy or “Your Aircraft Physical Damage Coverage,” we agree to give the owner, lienholder or lessor thirty (30) days notice before the cancellation takes effect.

Schedule

Aircraft Make and Model Aircraft Registration

See “Insured Owner’s Interest Endorsement”

Lienholder’s or Lessor’s Name and Address


T. Lay-Up Credit for Owned Aircraft.

In the event an aircraft described on your Coverage Summary Page is laid-up and out of service for any reason, other than loss or damage covered by “Your Aircraft Physical Damage Coverage”, we will refund premiums for the period the aircraft is out of service, computed at seventy-five percent (75%) of the pro-rata premium which applied to the aircraft. However, no refund will be made for any lay-up period of less than twenty (20) consecutive days.



IV. YOUR VOLUNTARY SETTLEMENT COVERAGE with Weekly Payments and Permanent Total Disability

“Your Liability Coverage” section of this policy is extended to include Voluntary Settlement Coverage. We will offer on your behalf and only at the request of “EJM” a sum to or for each passenger who receives certain injuries while riding in a covered aircraft with your permission. A passenger is anyone who enters the aircraft to ride in or operate it. It is a requirement of this offer that we receive a complete and final release of all liability for the injuries covered under your Combined Liability Coverage for bodily injury and property damage. We will not be obligated to make a voluntary settlement offer to pay a claim to, or make a settlement with, a passenger or his or her estate, if “EJM” does not request us to do so within one (1) year of the occurrence involving an aircraft covered under this section.

What injuries are covered. Offers may be made to or for passengers who, immediately or within ninety (90) days after an occurrence, die, suffer permanent loss of sight or have an entire hand or foot completely severed in an occurrence while riding in a covered aircraft with your permission.

What we won’t cover. We won’t cover:

e. anyone acting as a crew member unless employee crew member(s) is

shown as “included” on the Coverage Summary Page; or

• a passenger in any aircraft not covered under this policy. But this Coverage will apply to newly acquired aircraft as described in “Your Coverage for Newly Acquired Aircraft” section of this policy; or

f. any aircraft unless it is used with the knowledge and consent and on

behalf of “EJM” in its business.

Unlike “Your Liability Coverage,” the additional Coverage under this section applies to injuries covered by workers’ compensation, unemployment compensation, disability benefit or similar law. But, the Coverage under this section may not be used to satisfy your or your insurance company’s obligation under a workers’ compensation, unemployment compensation, disability benefit or similar law.

Voluntary Settlement Limits. The Limits of Coverage shown on the Coverage Summary Page for “Each Passenger” is the most we will pay to any one passenger. The Limits of Coverage for “Each Employee Crew” is the most we will pay to any one employee crew member. The Limits of Coverage for “Each Occurrence” is the most we will pay for all passengers or employee crew members in any one occurrence.

If a passenger dies or loses both hands, both feet or the sight of both eyes, or a passenger loses one hand or one foot and the sight of one eye; or one hand and one foot, we will offer up to the Limits of Coverage for “Each Passenger.”

We will pay one-half of the Limits of Coverage for “Each Passenger” if a passenger loses either one hand, foot or sight of one eye.


YOUR VOLUNTARY SETTLEMENT COVERAGE With Weekly Payments and Permanent Total Disability


If a passenger or crew member covered under your Voluntary Settlement Coverage suffers an injury which is not covered, but which completely and continuously prevents that person from performing any or all of his or her job duties, we will offer to make the following payments:

1. If a passenger or crew member suffers such an injury, we will offer to pay either eighty percent (80%) of his or her average weekly salary, including bonuses and commissions for the year preceding the occurrence, or $2,000 per week for fifty-two (52) consecutive weeks, whichever is less.

2. If the passenger or crew member still cannot perform any or all of his or her job duties

after we have made our fifty-second (52nd) payment, we will pay the amount shown for “Each Passenger” or “Each Employee Crew Member” under the “Limits of Coverage” on the Coverage Summary Page. The total amount of all weekly payments we made will be deducted from this figure.

3. If, during the time we are making weekly payments, the person’s injuries result in an

injury described in the “What injuries are covered” section above, we will pay the amount shown for “Each Passenger” or “Each Employee Crew Member” under the “Limits of Coverage” shown on the Coverage Summary Page. The total amount of all weekly payments we made will be deducted from this figure.

We won’t, however, require a release for payments made under paragraph 1. of the “Weekly Payments” section, appearing above.

These Voluntary Settlement Limits are part of the Limits of Coverage shown on the Coverage Summary Page for “Combined Liability Coverage for bodily injury and property damage,” and they are not in addition to those limits. If there is any other “Voluntary Settlement Coverage” available to an “Insured Owner” which is also written with the Aviation Managers, then the limit available here will be reduced by the other available “Voluntary Settlement Coverage.”

If the person to whom we offer a settlement or payment does not accept the offer within ninety (90) days of the time we make it, or brings a suit against you for the injuries which are the subject of the offer, we will no longer be required to pay any settlement to that person under this section.



V. YOUR MEDICAL COVERAGE

We will pay all reasonable medical expenses that passengers, pilots and crew members, including you, incur within one (1) year from the date of an aircraft accident. But the aircraft must have been used by you or with your permission when the accident occurred. We will also pay all reasonable medical expenses that any person incurs while on airport premises you own, maintain or use, provided that person is on airport premises with your permission. Reasonable medical expenses include necessary costs of medical, surgical, dental, ambulance, hospital, professional nursing and funeral services.

A. What we will pay.

The amount shown on the Coverage Summary Page for “each person” is the most we will pay for all medical expenses for one person in any one accident. We won’t, however, provide medical services to anyone or their employees until any medical benefits covered under workers’ compensation have been deducted.

B. Whom we will pay.

We can pay each injured person directly or we can pay the hospital or any other organization that provided service. Any payment we make will be applied against the limits of “Your Medical Coverage” but won’t be an admission of your legal responsibility by us.

C. Proof of loss.

As soon as reasonably possible after the accident, an injured person or someone representing him or her must give us written proof of a claim. An injured person must also submit to physical examination by any doctor we select, whenever we reasonably ask. You will also help us obtain medical reports and copies of records.

D. Suits for medical payment.

No suit or other legal action to recover payment can be brought under this policy unless you have complied with all its terms and at least thirty (30) days have elapsed since the required proof of claim has been given to the Aviation Managers.



VI. YOUR COVERAGE FOR NEWLY ACQUIRED AIRCRAFT

If “EJM” becomes the owner, lessee or manager of another aircraft during the policy period, we will cover it under this policy provided it is operated under an “Aircraft Management Agreement,” “EJM” notifies the Aviation Managers within thirty (30) days after “EJM” acquires it, pays an additional premium, and the aircraft:

1. replaces an aircraft described in the “Insured Owner’s Interest Endorsement”;

or

2. is an additional aircraft “EJM” acquires management of the aircraft and the management agreement states that the “Insured Owner” has elected to place insurance under your policy; and

3. does not have a seating capacity in excess of forty (40) passengers.

Unless “EJM” and the Aviation Managers agree differently in writing, newly acquired aircraft are covered up to the following amounts:

Liability Coverage:

Replacement Aircraft. $200,000,000 or as agreed to in the “Aircraft Management Agreement” but not to exceed $550,000,000.

Additional Aircraft. $200,000,000 or as agreed to in the “Aircraft Management Agreement” but not to exceed $550,000,000.

Medical Coverage:

Replacement Aircraft. Same Coverage and “Limits of Coverage” as on the replaced aircraft.

Additional Aircraft. Same Coverage and “Limits of Coverage” as on your aircraft having the most similar passenger capacity.

Aircraft Physical Damage Coverage:

Replacement Aircraft. Same Coverage and deductibles as on aircraft having the most similar “Limit of Coverage.” We will cover the actual amount you paid for the aircraft, but not exceeding $60,000,000.

Additional Aircraft. Same Coverage and deductibles as on aircraft having the most similar “Limit of Coverage.” We will cover the actual amount you paid for the aircraft, but not exceeding $75,000,000.



VII. WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE

The following Exclusion Clause is added to the sections of this policy entitled, “Liability claims we won’t cover”; “Aircraft damage we won’t cover”; and “Your Medical Coverage”:

We won’t cover any claim, damage, injury, loss, cost, expense, or liability of any nature whatsoever arising from, occasioned by, or in consequence of:

(a) war, invasion, acts of foreign enemies, hostilities (whether war

be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power; or

(b) any hostile detonation of any weapon of war employing atomic or

nuclear fission and/or fusion or other like reaction or radioactive force or matter; or

(c) strikes, riots, civil commotions or labor disturbances; or

(d) any act of one or more persons, whether or not agents of a

sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional; or

(e) any malicious act or act of sabotage; or

(f) confiscation, nationalization, seizure, restraint, detention,

appropriation, requisition for title or use by or under the order of any government (whether civil, military or de facto) or public or local authority; or

(g) hi-jacking or any unlawful seizure or wrongful exercise of control

of the aircraft or crew (including any attempt at such seizure or control) made by any person or persons on board the aircraft acting without your consent.

Furthermore, this policy does not cover claims arising while the aircraft is outside of your control by reason of any of the above perils. The aircraft shall be deemed to have been restored to your control upon the safe return of the aircraft to you at an airfield not excluded by the geographical limits of this policy, and entirely suitable for the operation of the aircraft (such safe return shall require that the aircraft be parked with engines shut down and under no duress).



VIII. DATE CHANGE RECOGNITION EXCLUSION AND LIMITED WRITE-BACK

1. Your policy does not cover any claim, damage, injury, loss, cost, expense or liability (whether in contract, tort, negligence, product liability, misrepresentation, fraud or otherwise) of any nature whatsoever arising from, occasioned by, or in consequence of (whether directly or indirectly and whether wholly or partly):

A) Any actual or alleged failure, malfunction or inadequacy of:

1) Any of the following, whether belonging to you, to any person or organization

covered under your policy, or to others, whether or not part of any computer system or whether in your possession, or of any person or organization covered under your policy, or of any third party;

a) computer hardware, including microprocessors; or b) computer application software; or c) computer operating systems and related software; or d) computer networks; or e) microprocessors, computer chips, integrated circuits or other information

technology equipment or systems; or

2) Any other products or systems and any services, data, or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph A) 1) of this exclusion;

due to the inability to correctly recognize, process, distinguish, interpret or accept:

− the change of year from 1999 to 2000; or − the change of date from August 21, 1999 to August 22, 1999; or − any other change of year, date or time;

B) Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair,

replacement or supervision provided or done by you or for you to determine, rectify, or test for any potential or actual problems described in Paragraph A) of this exclusion.

2. A) With respect to Your Aircraft Physical Damage and Your Liability Coverages the Date Change Recognition Exclusion shall not apply to:

1) any accidental loss of or damage to an aircraft covered under your policy;

2) any sums which you or any person or organization covered under your policy

shall become legally liable to pay as damages because of:

a) accidental bodily injury to passengers directly caused by an accident to an aircraft covered under your policy; and/or

b) loss of or damage to baggage and personal articles of passengers, mail and cargo directly caused by an accident to an aircraft covered under your policy; and/or

c) accidental bodily injury and accidental property damage directly caused by an aircraft covered under your policy or by any person or object falling therefrom.

Applicable to other Coverages:

B) The Date Change Recognition Exclusion shall not apply to any sums which you or any

person or organization covered under your policy shall become legally liable to pay as damages because of bodily injury or physical injury to or destruction of tangible property resulting from a covered occurrence.



IX. NOISE AND POLLUTION AND OTHER PERILS EXCLUSION

1. This insurance does not apply to any liability, including liability arising out of or assumed under contract, or any injury, loss or damage, including bodily injury, fear of bodily injury, damage or fear of damage, personal injury, advertising injury, sickness, disease, occupational disease, disability, shock, death, mental anguish, mental injury, property damage or any loss, cost or expense, loss of use including grounding, or any other claim, cost or expense whatsoever, directly or indirectly arising out of, resulting from, caused or occasioned by, happening through, in consequence of, or in any way involving:

a. Noise (whether audible to the human ear or not), vibration, sonic boom, and any

phenomena associated with the foregoing; or

b. “Pollution or Contamination” of any kind whatsoever, or the exposure to “Pollution or Contamination,” or the fear of exposure to or the effects of “Pollution or Contamination” or the existence of “Pollution or Contamination” in any place or thing or in the atmosphere, land, or any watercourse or body of water, as well as any claim or suit by or on behalf of or any direction, demand or request or any statutory or regulatory requirement, or any voluntary decision, by or on behalf of any governmental authority or other alleged responsible party, that any “Named Insured” or others test for, monitor, clean up, remove, contain, treat, detoxify, neutralize or in any way respond to or assess the effects of “Pollutants or Contaminants”; or

c. Electrical or electromagnetic emission or interference of any kind whatsoever; or

d. Interference with the use of property.

For purposes of this Exclusion:

i. “Pollution or Contamination” means any actual, alleged or threatened

discharge, dispersal, release, escape, seepage, migration, disposal or the mere presence of “Pollutants or Contaminants” in any form.

ii. “Pollutants or Contaminants” means any pollutant, contaminant or

irritant, including, without limitation, any solid, liquid, gaseous or thermal pollutant, contaminant or irritant, or any air emission, smoke, vapor, soot, fume, acid, alkali, chemical, or nuclear material alleged to be a possible or probable carcinogenic, odor, oil or other petroleum product, fungus (including mold or mildew or any mycotoxin, spore, scent or byproduct produced or released by fungi, other than any fungi intended by the “Named Insured” for human consumption), or “Waste” of any kind whatsoever, including solid waste, waste water, waste oil, infectious medical waste, and human, animal or vegetable waste.

iii. “Waste” means any waste including material to be recycled,

reconditioned or reclaimed, whether or not the material has been disposed of by the “Named Insured” or any person handling the “Waste”.

2. With respect to any provision in this policy concerning the duty of Insurers to investigate or

defend claims, such provision shall not apply and Insurers shall not be required to defend claims excluded by paragraph 1.

3. This Exclusion shall not apply to any claim for bodily injury or physical injury to tangible

property that results from a crash, fire, explosion or collision of “Completed Aircraft,” or results from a recorded in-flight emergency causing abnormal aircraft operation of “Completed Aircraft.” For purposes of this subsection, “Completed Aircraft” means an aircraft completely assembled and capable of motion under its own power.



X. ASBESTOS EXCLUSION This insurance does not apply to:

1. any liability, including liability arising out of or assumed under contract, or any injury, loss or damage, including bodily injury, fear of bodily injury, damage or fear of damage, personal injury, advertising injury, sickness, disease, occupational disease, disability, shock, death, mental anguish, mental injury, property damage or any loss, cost or expense, loss of use including grounding, or any other claim, cost or expense whatsoever directly or indirectly arising out of, resulting from, caused or occasioned by, happening through, in consequence of, or in any way involving or related to “asbestos” or the use of or exposure to asbestos, including the failure of any product or material containing asbestos, or the existence or presence of asbestos in any place or thing or in the atmosphere, land, or any watercourse or body of water; or

2. any damages or any loss, cost or expense arising out of (i) any claim or suit by or on

behalf of any governmental authority or any other allegedly responsible party because of, or (ii) any request, demand, order or statutory or regulatory requirement that any “Named Insured” or any other person or entity should be or is responsible for:

(a) assessing the presence, absence, amount or effects of asbestos; or

(b) identifying, sampling, testing for, detecting, monitoring, cleaning up, containing,

treating, detoxifying, neutralizing, abating, disposing of, mitigating or removing asbestos or any product or material containing asbestos; or

(c) responding to asbestos or the potential effects of asbestos in any way other than

as described in subparagraph 2.(a) or (b) above; or

3. any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with paragraphs 1. and 2. of this Exclusion; or

4. any obligation to defend or indemnify, or to share damages with or repay someone else

due to or arising from, in whole or in part, any claim, action or suit against the “Named Insured” in connection with paragraphs 1., 2. and 3. of this Exclusion.

For purposes of this Exclusion, “asbestos” means asbestos, asbestos fibers, asbestos dust or any product or material containing “asbestos.”



XI. NUCLEAR RISK EXCLUSION WITH EXCEPTIONS

(1) Your policy does not apply to: (i) the loss or destruction of, or damage to, any property (including aircraft), as well as any expense or consequential damages relating to such loss or destruction of property, or (ii) any legal liability or medical expense of any nature,

directly or indirectly caused or contributed to by or arising from:

(i) the radioactive, toxic, explosive or other hazardous properties of any explosive

nuclear assembly or nuclear component thereof;

(ii) 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;

(iii) ionizing radiations or contamination by radioactivity from, or the toxic, explosive or

other hazardous properties of, any other radioactive source whatsoever.

(2) It is agreed that such radioactive material or other radioactive source in paragraph (1), subparagraphs (b) and (c) above, shall not include:

(i) depleted uranium and natural uranium in any form;

(ii) radioisotopes which have reached the final stage of fabrication so as to be usable

for any scientific, medical, agricultural, commercial, educational or industrial purpose.

(3) Notwithstanding the exception to this exclusion set forth in paragraph (2), your policy does not cover

loss or destruction of, or damage to, any property or any expense or consequential damages related thereto, or legal liability of any nature with respect to which:

(i) anyone insured under your policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy; or

(ii) any person or organization is required to maintain financial protection pursuant to legislation in any country; or

(iii) anyone insured under your policy would be entitled to indemnification from any

government or agency thereof regardless of whether this policy had been issued to you.

(4) Notwithstanding the exception to this exclusion set forth in paragraph (2), your policy does not cove

Loss, destruction, damage, expense or legal liability in respect of the nuclear risks excepted from this exclusion by reason of paragraph (2) shall (subject to all other terms, conditions, limitations, warranties and exclusions of your policy) be covered, provided that:

(i) in the case of any claim in respect of radioactive material in the course of carriage

as cargo, including storage or handling incidental thereto, 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;

(ii) the incident giving rise to the loss, destruction, damage, expense or legal liability

arises from an event occurring during your policy period and anyone insured under your policy or any claimant have asserted a claim against us within three years of the date of such occurrence; and



(iii) 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)

Beta, gamma and low toxicity alpha emitters

All other emitters

Maximum permissible level of non-fixed

radioactive surface contamination (Averaged over 300 cm

2)

Not exceeding 4 Becquerels/cm

2

(10-4

microcuries/cm2)

Not exceeding 0.4 Becquerels/cm

2

(10-5

microcuries/cm2)

(5) The coverage afforded by this endorsement may be cancelled by us at any time by giving seven (7) days notice of cancellation or the notice period required by applicable law, whichever is longer.


MEXICAN WARNING NOTICE


If you operate your aircraft in Mexico, you may be fined or jailed and your aircraft impounded unless you have Aircraft Liability Insurance written by a Mexican insurance company. To avoid these possibilities you must obtain additional insurance from a company licensed under the laws of Mexico.


Page 1 of 2 Pages MC04-0413 District of Columbia, Iowa, Maine, North Dakota, Ohio, Rhode Island, South Dakota, and Texas

PARTICIPATING COMPANY SCHEDULE

THIS IS A COMBINATION POLICY THE LIABILITY OF THE COMPANIES IDENTIFIED BELOW IS SEVERAL (AND NOT JOINT).

LIST OF PARTICIPATING COMPANIES

Companies Pro Rata Share of Liability

ACE American Insurance Company 33.33%

General Reinsurance Corporation 33.34%

Liberty Mutual Insurance Company 33.33%



PARTICIPATING COMPANY SCHEDULE By signing this Schedule, each of the companies listed above hereby executes the policy to which the Schedule is attached and each endorsement and other attachment thereto, all of which have been signed on its behalf by the Aviation Managers.

ACE American Insurance Company Philadelphia, Pennsylvania

General Reinsurance Corporation Stamford, Connecticut

Liberty Mutual Insurance Company Boston, Massachusetts

Secretary

Secretary

Secretary President

President

President

OFAC Notice 0412

ADVISORY NOTICE TO POLICYHOLDERS

UNITED STATES DEPARTMENT OF THE TREASURY OFFICE OF FOREIGN ASSETS CONTROL

THIS NOTICE PROVIDES INFORMATION CONCERNING THE LAW OF THE UNITED STATES THAT MAY

HAVE AN IMPACT ON YOUR INSURANCE COVERAGE.

PLEASE READ THIS NOTICE CAREFULLY

The Office of Foreign Assets Control ("OFAC") of the US Department of the Treasury administers and enforces economic sanctions and embargo programs against targeted foreign countries, groups and individuals that pose a threat to the national security and foreign policy of the United States. This includes agents, instrumentalities and controlled entities of targeted countries and individuals and entities acting for or on their behalf. Economic sanctions are also designed to target terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. OFAC acts under Presidential wartime and national emergency powers, as well as authority granted by specific legislation, to impose controls on economic transactions of any nature including the authority to freeze the assets of sanctions targets that are within US jurisdiction. The United Nations and other international organizations also impose economic sanctions that involve close cooperation with allied governments. The OFAC sanctions and embargo programs apply comprehensively and not just to insurance transactions. OFAC maintains a list of Specially Designated Nationals and Blocked Persons (the “SDN” list). The SDN list identifies numerous individuals and entities, including:

• Foreign Agents; • Front Organizations; • Terrorists and terrorist organizations; and • Narcotics traffickers,

The completed SDN list and other information relating to economic sanctions and embargo programs administered by OFAC is located at www.treas.gov/offices/enforcement/ofac. If it is determined that your policy or any coverage issued under it is prohibited by OFAC regulations or that payment of policy benefits to any insured, additional insured, or any person or entity claiming that benefits under your policy violates any rule, regulation or executive order administered by OFAC, your policy may be deemed null and void and/or payments under your policy may be blocked. In addition, such action will be reported to OFAC, as required by OFAC regulation.

USAIG All-Clear Aircraft Management Policy Policy No. SIHL1-264U

(A Several Liability Combination Policy)

Terrorism Risk Insurance Act, as amended Policyholder Disclosure

NOTICE OF TERRORISM INSURANCE COVERAGE

Page 1 of 2 Pages 265-0108

THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK INSURANCE ACT AS AMENDED. THIS ENDORSEMENT IS A DISCLOSURE AND DOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THIS POLICY.

Notice of Terrorism Insurance Act Coverage.

You are hereby notified that, under the Terrorism Risk Insurance Act, as amended (the Act), you have a right to purchase insurance coverage from us for losses resulting from Acts of Terrorism as defined in Section 102(1) of the Act.

The term Act of Terrorism means any act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States:

(i) To be an act of terrorism; (ii) To be a violent act or an act that is dangerous to human life, property, or

infrastructure; (iii) To have resulted in damage within the United States, or outside the United

States in the case of an air carrier (as defined by section 40102(a)(2) of Title 49 of the United States Code as “a citizen of the United States undertaking by any means, directly or indirectly, to provide air transportation”) or a U.S. registered or U.S. flag vessel or the premises of a United States mission; and

(iv) To have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

The full text of the Act may be accessed through http://thomas.loc.gov.

YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES GOVERNMENT TO YOUR INSURER UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER YOUR POLICY MAY CONTAIN CERTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THE FORMULA, THE UNITED STATES GOVERNMENT GENERALLY REIMBURSES 85% OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS THAT MAY BE COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.

YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT AS AMENDED CONTAINS A $100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS’ LIABILITY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS $100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED $100 BILLION, YOUR COVERAGE MAY BE REDUCED.



Terrorism Risk Insurance Act, as amended Policyholder Disclosure

NOTICE OF TERRORISM INSURANCE COVERAGE

Page 2 of 2 Pages

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: EJM May 1, 2013 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 1 By Endorsement No. 265-0108

Premium for Terrorism Insurance Coverage Under the Act

A. Aircraft Physical Damage: Coverage for physical damage loss from Acts of Terrorism, as defined by the Act is offered for a rate of $.04 per $100 of policy limits per aircraft, subject to a minimum premium of $100 per aircraft. This premium is waived if you have elected to purchase War Risk Physical Damage Coverage.

B. Aircraft Liability: Coverage for liability losses from Acts of Terrorism, as defined by the Act, is offered for a fully earned premium of $240 per $1,000,000 of policy limits per aircraft for aircraft with a gross weight under 50,000 pounds and $320 per $1,000,000 of policy limits per aircraft for aircraft with a gross weight of 50,000 pounds or greater.

If you elect to purchase coverage under the Act, your premium and related terms will be stated on a separate endorsement attached to this policy. Depending upon what you have purchased, the terms of your coverage may appear on: a) Limited Write-Back of Coverage including Certified Terrorism Loss Coverage excluded

by the War, Hi-jacking and Other Perils Exclusion Clause (Applicable to Your Aircraft Physical Damage Coverage) endorsement; or

b) Certified Terrorism Loss Coverage (Applicable to Your Liability Coverage and Your

Medical Coverage) endorsement. Please contact your broker or the Aviation Managers if you have any questions.



War, Hi-jacking and Other Perils Exclusion Clause Limited Write-Back Provisions Per Occurrence Endorsement

(Applicable to Your Liability Coverage and Your Medical Coverage)


In consideration of an additional premium of $See Cover Letter, only with respect to "Your Liability Coverage" and "Your Medical Coverage,” the "War, Hi-jacking and Other Perils Exclusion Clause" shall be amended to delete paragraphs (a), (c), (d), (e), (f), and (g) thereof subject to the following: 1. Only with respect to the deletion of paragraph (a) from the “War, Hi-jacking and Other Perils Exclusion

Clause,” we won’t cover claims for damage to any form of property on the ground located outside of the United States of America or Canada, unless caused by or arising out of the use of your aircraft.

2. Limitation of Liability

The limit of the Companies’ liability under this Limited Write-Back shall be a sub-limit as shown in the Schedule below any one occurrence, except with respect to passengers in your aircraft in which case the Limit of Coverage is as stated on the Coverage Summary Page. This sub-limit is part of and not in addition to the Limit of Coverage stated on the Coverage Summary Page.

3. The coverage provided by this endorsement shall only apply to those aircraft listed in the schedule below.

Schedule

Year, Make and Model Aircraft Aircraft Registration Limit

See the “Insured Owner’s Interest Endorsement.” 4. Automatic Termination

This Limited Write-Back shall terminate automatically under any of the following circumstances:

(i) upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following: France, the People’s Republic of China, the Russian Federation, the United Kingdom, or the United States of America; or

(ii) only with respect to the deletion of paragraph (a) from the “War, Hi-jacking and Other Perils

Exclusion Clause,” upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wherever or whenever such detonation may occur, and whether or not an aircraft covered under your policy may be involved; or

(iii) upon the requisitioning of any aircraft covered under your policy for title or use.

However, if any aircraft covered by your policy is in flight when any of the above circumstances occurs, then this Limited Write-Back (unless otherwise cancelled, terminated or suspended) shall remain in effect with respect to such aircraft until completion of its first landing and until its passengers have deplaned



War, Hi-jacking and Other Perils Exclusion Clause Limited Write-Back Provisions Per Occurrence Endorsement

(Applicable to Your Liability Coverage and Your Medical Coverage)

Page 2 of 2 Pages


5. Review and Cancellation

(a) Review of Premium and/or Geographical Limits (7 days notice) The Companies or the Aviation Managers may give notice to review premium and/or geographical limits by mailing or delivering notice to you at the address shown on the Coverage Summary Page at least seven (7) days before such notice takes effect.

(b) Limited Cancellation (2 days notice)

Following a hostile detonation as set forth in paragraph 4. (ii) above, the Companies or the Aviation Managers may give notice of cancellation of all or part of this Limited Write-Back by mailing or delivering notice to you at the address shown on the Coverage Summary Page at least two (2) days before such cancellation takes effect.

(c) Cancellation (7 days notice)

This Limited Write-Back may be cancelled by either the Companies, the Aviation Managers, or you by mailing or delivering notice seven (7) days before such cancellation takes effect.



Limited Write-Back of Coverage including Certified Terrorism Loss Coverage

excluded by the War, Hi-jacking and Other Perils Exclusion Clause

(Applicable to Your Aircraft Physical Damage Coverage)


1. Coverage for acts of terrorism is included in your policy. You are hereby notified that under the Terrorism Risk Insurance Act, as amended in 2007 (the Act), the definition of act of terrorism has changed. As defined in Section 102(1) of the Act: the term “act of terrorism” means any act that is certified by the Secretary of the Treasury in concurrence with the Secretary of State and the Attorney General of the United States to be an act of terrorism.

a. A “certified act of terrorism” means an act that is certified by the Secretary of the Treasury, in

concurrence with the Secretary of State and the Attorney General of the United States: 1) to be an act of terrorism; 2) to be a violent act or an act that is dangerous to human life, property or

infrastructure; 3) to have resulted in damage:

a) within the United States; or b) to an air carrier (as defined in section 40102 of title 49, United States Code); to a

United States flag vessel (or a vessel based principally in the United States on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), regardless of where the loss occurs; or at the premises of any United States mission.

4) to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

b. “Certified terrorism loss” means loss that results from a “certified act of terrorism.”

c. Under your Coverage, any losses resulting from certified acts of terrorism may be partially

reimbursed by the United States Government under a formula established by the Act. Under the formula, the United States Government generally reimburses 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the Coverage. The Act contains a $100 billion cap that limits U.S. Government reimbursement as well as insurers’ liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year. If the aggregate insured losses for all insurers exceed $100 billion, your Coverage may be reduced.

The portion of your annual premium that is attributable to Coverage for certified acts of terrorism is as follows, and does not include any charges for the portion of losses covered by the United States government under the Act.

2. Only with respect to the aircraft scheduled below and with respect only to “Your Aircraft Physical

Damage Coverage,” the “War, Hi-jacking and Other Perils Exclusion Clause” shall be amended to delete paragraphs (a), (c), (d), (e), (f), and (g) thereof subject to the following:

a. Automatic Termination

This Limited Write-Back shall terminate automatically under any of the following circumstances:

(i) upon the outbreak of war (whether there be a declaration of war or not) between any two

or more of the following: France, the People’s Republic of China, the Russian Federation, the United Kingdom, or the United States of America; or

(ii) only with respect to the deletion of paragraph (a) from the “War, Hi-jacking and Other

Perils Exclusion Clause,” upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wherever or whenever such detonation may occur, and whether or not an aircraft covered under your policy may be involved; or

(iii) upon the requisitioning of any aircraft covered under your policy for title or use.

USAIG All-Clear Aircraft Management Policy


Limited Write-Back of Coverage including Certified Terrorism Loss Coverage

excluded by the War, Hi-jacking and Other Perils Exclusion Clause

(Applicable to Your Aircraft Physical Damage Coverage)

Page 2 of 2 Pages


However, if any aircraft covered by your policy is in flight when any of the above circumstances occurs, then this Limited Write-Back (unless otherwise cancelled, terminated or suspended) shall remain in effect with respect to such aircraft until completion of its first landing and until its passengers have deplaned.

b. Review and Cancellation

(i) Review of Premium and/or Geographical Limits (7 days notice).

The Companies or the Aviation Managers may give notice to review premium and/or geographical limits by mailing or delivering notice to you at the address shown on the Coverage Summary Page at least seven (7) days before such notice takes effect.

(ii) Limited Cancellation (2 days notice).

Following a hostile detonation as set forth in paragraph a. (ii) above, the Companies or the Aviation Managers may give notice of cancellation of all or part of this Limited Write-Back by mailing or delivering notice to you at the address shown on the Coverage Summary Page at least two (2) days before such cancellation takes effect.

(iii) Cancellation (7 days notice).

This Limited Write-Back may be cancelled by either the Companies, the Aviation Managers, or you by mailing or delivering notice seven (7) days before such cancellation takes effect.

c. The Coverage provided by this endorsement shall only apply to those aircraft listed in the

schedule below.

Schedule

Year, Make and Model Aircraft Aircraft Registration

See the “Insured Owner’s Interest Endorsement.” Additional premium for this endorsement $Included.



United States Department of Transportation Form 4522

Standard Endorsement

Air Taxi Operator Policies of Insurance for Aircraft Bodily Injury and

Property Damage Liability


The policy to which this endorsement is attached is amended to ensure compliance by the Named Insured, an air taxi operator providing services in air transportation, with the provisions of Part 298 of the regulations of the U. S. Department of Transportation. 1. In consideration of the premium stated in the policy to which this endorsement is attached, the Insurer agrees to pay, within the limits of liability for Coverages specified in the policy, all sums which the Named Insured shall become legally obligated to pay as damages for bodily injury to or death of persons or for loss of or damage to property of others, resulting from the Named Insured’s negligent operation, maintenance, or use of aircraft in “air transportation,” as that term is defined in the Federal Aviation Act of 1958, as amended. The liability of the Insurer is not contingent upon the solvency or freedom from bankruptcy of the Named Insured. 2. The Insurer also agrees that the attached policy shall remain in force, and cannot be replaced, cancelled, withdrawn, or modified to exclude any aircraft or to reduce the extent of liability coverage, by the Insurer or the Insured, nor expire by its own terms, until ten (10) days after written notice by the Insurer (by the retiring Insurer, in the event of replacement) describing the change is received by the Department’s Office of Aviation Analysis, Washington, D.C. 20590 (or for Alaskan operators, is received by DOT Field Office, Anchorage, Alaska 99501). In addition, with respect to expiration by the policy’s own terms, the Insurer agrees that to be effective the notice to the Department of nonrenewal must be received not more than thirty (30) days before the expiration date. 3. The Insurer further agrees that, within the limits of liability for Coverages specified in the policy, no term, condition, limitation, stipulation or other provision contained in the policy or any endorsement attached to it or any violation of it by the Named Insured, except the EXCLUSIONS contained in this endorsement shall relieve the Insurer of liability with respect to such bodily injury or property damage. In this connection, the Insurer expressly agrees that no violation by the Named Insured of any safety or other rule, regulation, order or other legally imposed requirement of the U. S. Department of Transportation (including the Federal Aviation Administration) and no special waiver issued by the Department shall affect the insurance afforded under this policy. 4. The Insurer further agrees that, while an aircraft owned by the Named Insured and declared in this policy, is withdrawn from normal use because of its breakdown, repair, servicing, loss or destruction, such insurance as is afforded by this policy with respect to such aircraft applies also with respect to another aircraft of similar type, horse-power, and seating capacity, whether or not owned by the Insured, while temporarily used as the substitute for such aircraft. (Applicable only if the aircraft are listed in the policy by FAA registration number.) 5. The only EXCLUSIONS of the policy to which this endorsement is attached follow: “EXCLUSIONS, unless otherwise provided in the policy of insurance, the liability insurance afforded under this policy shall not apply to: (a) Any loss against which the Named Insured has other valid and collectible insurance, except that the limits of liability provided under this policy shall be in excess of the limits provided by such other valid and collectible insurance up to the limits certified in a certificate of insurance, but in no event exceeding the limits of liability expressed elsewhere in this policy;








(b) Liability assumed by the Named Insured under any contract or agreement, unless such liability would have attached to the Insured even in the absence of such contract or agreement: Provided, however, that this exclusion shall not apply to the Named Insured’s waiver of liability limitations under the Warsaw Convention by signing a counterpart to the agreement of carriers (Agreement CAB 18900), as approved by Board Order E-23680, May 13, 1966, agreeing to a minimum liability for injury or death of passengers of $75,000 per passenger, or any amendment or amendments to such agreement which may be approved by the Board and to which the Named Insured becomes a party; (c) Bodily injury, sickness, disease, mental anguish or death of any employee of the Named Insured while engaged in the duties of employment, or any obligation for which the Named Insured or any company as Insurer may be held liable under any workmen’s compensation or occupational disease law; (d) Loss of or damage to property owned, rented, occupied or used by, or in the care, custody or control of the Named Insured, or carried in or on any aircraft with respect to which the insurance afforded by this policy applies; (e) Personal injuries or death, or damage to or destruction of property, caused directly or indirectly, by hostile or war-like action, including action in hindering, combating or defending against an actual, impending or expected attack by any government or sovereign power, de jure or de facto, or military, naval, or air forces, or by an agent of such government, power, authority, or forces; the discharge, explosion or use of any weapon of war employing atomic fission or atomic fusion, or radioactive materials; insurrection, rebellion, revolution, civil war or usurped power, including any action hindering, combating, or defending against such an occurrence; or confiscation by any government or public authority; (f) Any loss arising from operations within any geographic areas other than the following: (1) Between any points in the ‘area of operation’ described in the operations specifications issued by the FAA in conjunction with its issuance of the ATCO Operating Certificate to the Insured, as follows: WORLDWIDE. Provided, however, That if one or more of the 48 contiguous States or the District of Columbia is listed in such area of operation; all 48 contiguous States and the District of Columbia must be included within the coverage of insurance under this certificate; and (2) Within any other geographic area for which coverage is specified in the policy of insurance; And provided, further, That the loss caused by mere misadventure in flying over or landing in any geographic area not specified in (1) or (2) above shall not be excluded. (g) Any loss arising from operations by the Named Insured to or from installations of the Distant Early Warning System (DEW line) or the Ballistic Missile Early Warning System (BMEWS);







Page 3 of 3 Pages


(h) Any loss arising from operation of an aircraft (1) without a copilot, if one is required under the attached policy of insurance or (2) by a pilot (or pilot and copilot) not named in or meeting the qualification, experience, and currency requirements provided in the attached policy of insurance; (i) Any loss arising from the ownership, maintenance, or use of any aircraft of a type or class not specified for coverage in the policy, or any aircraft not declared to the Insurer in accordance with the terms and conditions of this policy, other than substitute aircraft as authorized in paragraph 4 of this endorsement; (j) Any loss arising from operations other than the carriage by aircraft of persons or property as a common carrier for compensation or hire, or the carriage of mail by aircraft, in interstate, overseas, or foreign air transportations; (k) Any loss arising from operations with aircraft for which an airworthiness certificate has not been issued, has been surrendered, or has been suspended or revoked by the Administrator of the Federal Aviation Administration, or has expired by its terms; (l) Any loss arising from operations with aircraft which, at takeoff, have not had inspections, maintenance, preventive maintenance, and alterations performed when required by the Federal Aviation Regulations, or which have not had such inspections, maintenance, preventive maintenance and alterations performed by persons authorized by the Federal Aviation Regulations.” 6. The Named Insured will promptly reimburse the Insurer for payments made by the Insurer which the Insurer would not have been obligated to make except for the provisions of this endorsement. 7. Any exclusions, conditions or provisions of this endorsement that have the effect of restricting or nullifying the coverage granted by this policy in the absence of this endorsement shall not apply.



United States Department of Transportation Amendment

Issued with Policy subject to insurance requirements contained in 14 CFR Part 205 of the

U.S. Department of Transportation


We have issued a Certificate of Insurance on the OST Form 6410 showing the following Coverages and Limits of Coverage. Coverages Limits of Coverage (Minimum Limits) [ ] Liability Coverage for bodily $ 75,000 Each Person

injury (except to passengers, $ 300,000 Each Occurrence other than cargo attendants)

[ ] Liability Coverage for bodily $ 75,000 Each Passenger

injury to passengers only $ 75,000 X 75% of total number of passenger seats installed in the aircraft “Each Occurrence”

[ ] Property Damage $ 100,000 Each Occurrence OR [ X ] Combined Liability Coverage The “Each Occurrence” limit is at least equal to

the required minimums stated above for: Liability Coverage for bodily injury (except to passengers, other than cargo attendants); Liability Coverage for bodily injury to passengers only; and, Property Damage.

OR [ ] Liability Coverage for bodily $ 300,000 Each Person

injury (except to passengers, $ 2,000,000 Each Occurrence other than cargo attendants) and property damage



OR [ ] Combined Liability Coverage The “Each Occurrence” limit is at least equal to

the required minimums stated above for: Liability Coverage for bodily injury (except to passengers, other than cargo attendants) and property damage; and, Liability Coverage for bodily injury to passengers only.



United States Department of Transportation Amendment

Issued with Policy subject to insurance requirements contained in 14 CFR Part 205 of the

U.S. Department of Transportation

Page 2 of 2 Pages


OR [ ] Liability Coverage for bodily $ 300,000 Each Person

injury (except to passengers, $ 20,000,000 Each Occurrence other than cargo attendants) and property damage



OR [ ] Combined Liability Coverage The “Each Occurrence” limit is at least equal to

the required minimums stated above for: Liability Coverage for bodily injury (except to passengers, other than cargo attendants) and property damage; and, Liability Coverage for bodily injury to passengers only.

OPTIONAL [ ] Cargo Legal Liability Coverage $ Each Occurrence The OST Form 6410 and the insurance requirements of 14 CFR Part 205 apply only to “Your Liability Coverage” and no other Coverages provided by this policy. Wherever the word “Insured” is used in the OST Form 6410, it will mean the same as the word “Named Insured” appearing on the Coverage Summary Page. If we negotiate and settle any claim, suit or judgment which we would not have had to settle without the OST Form 6410 being attached to this policy, you agree to promptly reimburse us for all payments we’ve made, including all costs of defense, court costs, judgments and settlements made.



Loaned, Leased or Rented Spare Engine Agreement Endorsement

Page 1 of 2 Pages 399 EJM 0913

Only with respect to the Rolls-Royce BR710 Engine Lease Agreement (hereinafter the “Agreement”) between Executive Jet Management, Inc. and Rolls-Royce Deutschland Ltd & Co. KG dated “See Schedule”, a copy of which is on file with the Aviation Managers, only to the extent required in the aforementioned “Agreement,” and only for the purpose of this endorsement: 1. The following sections under “Your Aircraft Physical Damage Coverage” are changed to read:

a. The “Limits of Coverage” for each engine shall be in addition to the “Limits of Coverage” for “Your Aircraft Physical Damage Coverage” and “Limited Write-Back of Coverage including Certified Terrorism Loss Coverage excluded by the War, Hi-jacking and Other Perils Exclusion Clause (Applicable to Your Aircraft Physical Damage Coverage)” and will be in the amount shown in the schedule below:

Schedule

See Attached Schedule

If “Your Aircraft Physical Damage Coverage” is subject to a deductible, the amount of the deductible shown on the Coverage Summary Page will apply.

b. Only with respect to coverage provided by this endorsement, the limit shown in Paragraph G,

“Spare Engines and parts Coverage,” shown under the “”Aircraft Physical Damage Coverage” section of your policy, is changed to $See Schedule per engine in any one occurrence.

c. If Executive Jet Management, Inc. has other insurance covering a loss to the engine(s)

scheduled above, the insurance provided by this endorsement shall be excess insurance. This section does not apply to any insurance purchased as specifically excess of this insurance. Excess insurance is insurance which becomes effective only when all other valid and collectible insurance covering the loss has been exhausted. Other insurance includes any retained limit under any self insurance or deductible program you have established.

If any other insurance covering the loss is written through the Aviation Managers, the “Limit of Coverage” that applies under your policy will be reduced by the “Limit of Coverage” under the other insurance.

d. Only with respect to the engine(s) scheduled above, the “Whom We will Pay” section

appearing on the Coverage Summary Page is changed to read:

Whom We will Pay. Payments for loss covered under “Your Aircraft Physical Damage Coverage” that becomes payable as a total loss (less any deductible that applies) will be made payable to, or to the order of the Rolls-Royce Deutschland Ltd & Co. KG. In respect of any other claims, settlement (less any deductible that applies) shall be made with such party(ies) as may be necessary to repair the engine unless otherwise agreed after consultation between the Named Insured and the Aviation Managers and, where necessary, under the terms of the agreement, Rolls-Royce Deutschland Ltd & Co. KG. Such payments shall only be made provided they are in compliance with all applicable laws and regulations.

We shall be entitled to the benefit of salvage in respect of any property for which a claim settlement has been made.

e. The “Rights against third parties” section of your policy shall not apply to Rolls-Royce

Deutschland Ltd & Co. KG with respect to claims resulting from your maintenance or use of the engine(s). However, this waiver will not apply to claims arising out of or from Rolls-Royce Deutschland Ltd & Co. KG’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreement” of any Rolls-Royce Deutschland Ltd & Co. KG product or service.




Page 2 of 2 Pages

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: Executive Jet Management, Inc. May 1, 2013 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 7 By Endorsement No. 399 EJM 0913

2. The following sections under “Your Liability Coverage” are changed to read:

a. The “Who's Covered” section of “Your Liability Coverage” shall include Rolls-Royce Deutschland Ltd & Co. KG and Indemnified Parties as advised by Rolls-Royce Deutschland Ltd & Co. KG to the extent of its rights and interest in the engine(s) described in the schedule above, but only with respect to loss, injury or damage attributable to the negligence of Executive Jet Management, Inc. and only to the extent required in the “Agreement”. However, we will not cover Rolls-Royce Deutschland Ltd & Co. KG and Indemnified Parties as advised by Rolls-Royce Deutschland Ltd & Co. KG for claims arising out of or from Rolls-Royce Deutschland Ltd & Co. KG and Indemnified Parties as advised by Rolls-Royce Deutschland Ltd & Co. KG’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreement” of any Rolls-Royce Deutschland Ltd & Co. KG and Indemnified Parties as advised by Rolls-Royce Deutschland Ltd & Co. KG product or service.

b. The “Limits of Coverage” appearing on the Coverage Summary Page are changed to read:


Combined Liability Coverage for bodily injury and property damage $ 250,000,000 Each Occurrence

c. The “Assumed liability” section of your policy appearing under the “Liability claims we

won’t cover” will not apply to the “Agreement” between Executive Jet Management, Inc. and Rolls-Royce Deutschland Ltd & Co. KG.

The insurance provided by this endorsement is primary and without right of contribution against any other insurance carried by or on behalf of Rolls-Royce Deutschland Ltd & Co. KG. However, if there is any other insurance covering the loss that is also covered by this policy and: a) such other insurance is not issued to Rolls-Royce Deutschland Ltd & Co. KG.; and b) such other insurance is written through the Aviation Managers, the "Limits of Coverage" that applies under this endorsement will be reduced by the "Limits of Coverage" under such other insurance. No act or omission by any person, including Executive Jet Management, Inc. shall void Coverage under this endorsement for Rolls-Royce Deutschland Ltd & Co. KG. provided Rolls-Royce Deutschland Ltd & Co. KG. did not consent to or acquiesce in such act or omission. If we or the Aviation Managers make a material change or cancel your policy for any reason other than nonpayment of premium, we agree to give thirty (30) days notice before the cancellation date or the material change becomes effective; ten(10) days for non-payment of premium; and seven (7) days for war risks notice of cancellation or adverse material change, to Rolls-Royce Deutschland Ltd & Co. KG. However, the “Cancellation” provisions stated above shall not be less than the required statutory limits. Additional premium for this endorsement is $Included.



Civil Use of Ministry of Defence Airfields Endorsement

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: Executive Jet Management, Inc.

May 1, 2013 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 8 By Endorsement No. 388-1106

It is noted that the Insured(s) may wish to use, for civil aircraft purposes, Ministry of Defence (MOD) airfields and be required to enter into an agreement with the Crown incorporating certain conditions for the civil (flying) use of such airfields and to afford an indemnity to the Crown in the form of INDEM 3.81/Form4a. The Insurers will indemnify the Insured for all sums which the Insured shall become legally liable to pay and shall pay to the Crown under such an agreement as compensatory damages (including costs awarded against the Insured) in respect of accidental bodily injury (fatal or otherwise) and accidental damage to property caused by any Aircraft insured under the policy or by any person or object falling therefrom. The limit applicable to this endorsement is £25,000,000 any one Accident and such limit shall not be in addition to nor in excess of any other limit of liability provided in the policy. Additional Premium: Included Unless the policy otherwise provides, the following exclusions shall apply: (a) Nuclear Risks Exclusion Clause AVN38B; (b) War, Hi-jacking and Other Perils Exclusion Clause (Aviation) AVN48B; (c) Noise and Pollution and Other Perils Exclusion Clause AVN46B; (d) Contracts (Rights of Third Parties) Act 1999 Exclusion Clause AVN72; and (e) Date Recognition Exclusion Clause AVN2000A. If Insurers are called upon to provide coverage to the Insured in compliance with INDEM 3.81/Form4a including the defence and legal costs associated therewith and if by reason of the terms conditions limitations and exclusions of the policy such coverage would not have been provided except for this endorsement then the Insured will reimburse Insurers for such payments made in providing coverage under INDEM 3.81/Form4a. Nothing in this endorsement shall restrict the coverages otherwise provided under the policy.


Lienholder’s or Lessor’s Interest Coverage with Premium Waiver

Page 1 of 2 Pages 111b EJM 0314

Paragraph S. Lienholder’s or Lessor’s Interest Coverage under “Your Aircraft Physical Damage Coverage” is changed to read: This endorsement expands “Your Aircraft Physical Damage Coverage” to protect the interest of the lienholder or lessor of the aircraft listed in the Schedule below. Should you do anything which makes your Coverage invalid, we will still make a payment to that lienholder or lessor to the extent coverage would otherwise apply, subject to the terms of your policy and as amended by this endorsement. Who is protected. The Coverage under this endorsement is only for the benefit of the lienholder or lessor. Whom we will pay. Payments for loss covered under your Aircraft Physical Damage will be made to “EJM,” the “Insured Owner” and any lienholder or lessor, as their legal interest may appear, for their respective aircraft. However, the Physical Damage Coverage shall not apply to any loss or claim arising out of the sole negligence of the lienholder or lessor. What we will pay. If we claim your Coverage is invalid, we will pay the lienholder or lessor, as their legal interest may appear for their respective aircraft, either the amount of damages, or the amount of the lien, whichever is less and we shall waive any right of set-off or counterclaim against the lienholder or lessor. The most we will pay is the limit of “Your Aircraft Physical Damage Coverage,” less any deductible which applies. We will not, however, make any payment to the lienholder or lessor unless and until their interest in your aircraft is impaired and you are in default. Determining the amount of lien. The amount of the lien will be reduced by any installments more than thirty (30) days overdue and by any charges not earned by the lienholder or lessor at the time of the occurrence causing loss of or damage to the aircraft. Notwithstanding the waiver of set-off or counterclaim stated in the “What we will pay” section above, if we make any payment to a lienholder or lessor because “EJM” and/or an “Insured Owner” invalidated this policy:

It is a condition of the coverage provided by this endorsement that, to the extent we have made a payment, a). we will be entitled to all rights the lienholder or lessor has against “EJM” and/or an “Insured Owner” through the lien or lease and b). the lienholder agrees to assign and/or transfer to us all legal rights they have regarding the collateral, security or rights of recovery they have with “EJM” and/or an “Insured Owner” regarding loss of or damage to the aircraft.

“EJM” and/or an “Insured Owner” agree to pay us back the full amount of any payment we make.

What is not covered. We will not cover any loss of or damage to the aircraft caused by conversion, embezzlement or secretion of the aircraft by “EJM” or the “Insured Owner”. What the lienholder or lessor must do. If “EJM” does not pay the premium due for the aircraft scheduled below, the lienholder or lessor must pay us all premium due for the aircraft scheduled below, but only if they wish coverage under this endorsement to continue in force. If “EJM” does not provide us with a proof of loss within the time required, the lienholder or lessor must provide us one within sixty (60) days after the required time. If we cancel or materially change your policy or “Your Aircraft Physical Damage Coverage,” we agree to give the owner, lienholder or lessor thirty (30) days notice before the cancellation or material change takes effect.

USAIG All-Clear Aircraft Management Policy (A Several Liability Combination Policy)

Lienholder’s or Lessor’s Interest Coverage with Premium Waiver

Page 2 of 2 Pages This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: Executive Jet Management, Inc. March 25, 2014 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 9 By Endorsement No. 111b EJM 0314

Schedule

Aircraft Make and Model FAA Identification


Lienholder’s or Lessor’s Name and Address


Additional premium for this endorsement $Included.

TRIA Notice 1213

NOTICE TO POLICYHOLDERS Potential Reduction in Coverage for Terrorism

Losses This is to notify you of a reduction in coverage for “certified acts of terrorism” under your insurance policy when the Terrorism Risk Insurance Act, as amended, (TRIA) expires, which is scheduled to occur on December 31, 2014. TRIA is a temporary program that spreads any losses from “Certified” Acts of Terrorism” between insurers and the federal government. Your policy contains a more detailed description of TRIA in the Terrorism Risk Insurance Act, as amended, Policyholder Disclosure, NOTICE OF TERRORISM INSURANCE COVERAGE. You have been given the option to accept or reject TRIA coverage. TRIA will expire at midnight, December 31, 2014 unless it is reauthorized and extended by the President and Congress. If TRIA is not reauthorized and extended, and you opted to accept TRIA coverage, your insurance coverage will be reduced to no longer include coverage for certified acts of terrorism, subject to applicable state law. If you opted to reject TRIA coverage there will be no change in the terms of your policy. You will receive an endorsement to your policy providing for this potential reduction in coverage.


Anniversary Premium – Open Expiration Policy


In accordance with the provisions of the “Open Expiration Policy” endorsement, the anniversary premium for the term May 1, 2014 to May 1, 2015 is $See Cover Letter.


Amendatory Endorsement

Page 1 of 2 Pages 393rf-0107 (360/400)

1. The following section of your policy, under “Your Liability Coverage,” is changed to read as follows:

A. Combined Liability Coverage for bodily injury and property damage.

9. Family Assistance Coverage. We will offer on your behalf and at the request of the “EJM”, all reasonable “Family Assistance Expenses” that a spouse, children, brothers, sisters or parents of a passenger incur within one (1) year from the date of an occurrence involving the fatality of a passenger. But, the aircraft involved in the occurrence must have been used by you or with your permission. “Family Assistance Expenses” are defined as the necessary and reasonable costs of transporting family members to and from the site of the occurrence, lodging near the site of the occurrence, and grief counseling.

The Coverage is in addition to the Limits of Coverage for “Combined Liability Coverage for bodily injury and property damage” shown on the Coverage Summary Page.

We will pay up to $See Insured Owner’s Interest Endorsement. 2. The following section of your policy, under “Your Aircraft Physical Damage Coverage,” is changed to

read as follows: H. Extra expense Coverage.

If your aircraft is damaged, and “Your Aircraft Physical Damage Coverage” covers the loss, we will reimburse you for the “extra expense” that you incur from chartering, leasing or renting a “replacement aircraft,” while your aircraft is out of service while being repaired.

“Extra expense” means that portion of the actual cost that you incur from chartering, leasing or renting a “replacement aircraft” which exceeds the cost you would have incurred had you operated your own aircraft which was damaged.

A “replacement aircraft” means an aircraft of similar or lesser size, weight and performance.

We will not cover “extra expense” after completion of repairs to your aircraft; or, if your aircraft is a total loss.

You should notify the Aviation Managers prior to incurring any “extra expense.” Also, you will be required to provide the Aviation Managers with invoices and other documentation to support the claim for all covered “extra expenses” within ninety (90) days of the date you incur the “extra expenses.” The most we will pay for all “extra expense” is $5,000,000. Coverage for “extra expense” will only apply to the period from the date of the loss or accidental damage to the three hundred sixty-fifth (365th) day following the date of the loss or accidental damage.

Coverage for “extra expense” is in addition to and not part of “Your Aircraft Physical Damage Coverage.”

If “Your Aircraft Physical Damage Coverage” is subject to a deductible, the amount of the deductible shown on the “Insured Owner’s Interest Endorsement” will apply once to the physical damage to your aircraft and the “extra expense” when combined together as one claim. This Coverage shall not apply to claims paid under your “Trip interruption expense” Coverage section of “Your Aircraft Physical Damage Coverage.”



Page 2 of 2 Pages This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: EJM May 1, 2014 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 11 By Endorsement 393rf-0107

3. The following section of your policy, under “Your Coverage for Newly Acquired Aircraft,” is changed to read as follows:


1. replaces an aircraft described in the “Insured Owner’s Interest

Endorsement”; or


3. does not have a seating capacity in excess of forty (40) passengers.


Liability Coverage:



Medical Coverage:







Physical Damage Managed Aircraft Loan/Lease Payment Continuation Coverage

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: EJM May 1, 2014 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 12 By Endorsement No. 428rf-0313

In consideration of the payment of the premium for this endorsement and subject to the following provisions which are applicable only to the insurance afforded by this endorsement and which shall be in addition to all other applicable provisions not herein revised, it is agreed that: 1. If any person or organization shown on the Coverage Summary Page, or any other organization under

his, her, or its management control, owns or leases an aircraft described on the Coverage Summary Page in whole or in part and continues to make obligatory aircraft loan or lease installment payments on time after a covered physical damage loss to the aircraft occurs, then, subject to the limit of insurance of $250,000 per occurrence, the Aviation Managers shall make a partial reimbursement of those installment payments as calculated in accordance with Paragraph 2. below:

2. The Aviation Managers will calculate the amount of the reimbursement payment by multiplying eighty

percent (80%) times the interest portion of the loan or lease payments made that were not overdue, excluding any part thereof which constitutes a down payment, balloon payment, or any other form of accelerated payment whatsoever, accrued for the period commencing thirty (30) days after physical damage loss occurred and continuing until the earliest of:

a. Ninety (90) days after physical damage loss occurred;

b. The date repairs were completed or could have been completed but for work done that was not

necessary to the repair;

c. The date the Aviation Managers tenders payment for a total loss; or

d. The end of the policy period, unless the policy is renewed. 3. For the same accrual period described in Paragraph 2. above, the Aviation Managers shall also

reimburse the lesser of pro rata of one-half of the aircraft management fee in effect on the date the physical damage loss occurred or $150,000 per occurrence.

4. EJM must provide documentation acceptable to the Aviation Managers that is reasonably necessary to

calculate the reimbursable amounts described in this endorsement within ninety (90) days of the physical damage loss. The Aviation Managers will calculate and make the reimbursement payments as soon as practicable after it receives the necessary information.

5. The Aviation Managers shall make all reimbursement payments described in this endorsement to EJM for

the account of all interests.


Criminal Defense and Repatriation Coverage

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: EJM May 1, 2014 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 13 By Endorsement No. FF01 EJM 0514

Only with respect to the aircraft listed in the “Schedule” of this endorsement, the “Additional liability Coverage” for those aircraft are changed to include:

Criminal Defense Coverage. We will pay up to $250,000 in the aggregate for “reasonable criminal defense expenses” that you incur in providing a defense against any criminal indictment or criminal charges imposed against one or more of your employed “crew members” by a “foreign governmental entity” that arise out of an occurrence to which the insurance under “Your Liability Coverage” applies. This coverage will apply only to “reasonable criminal defense expenses” incurred from imposition of the criminal charges or issuance of the criminal indictment until a judgment, whether guilty or not guilty, or plea, including a plea of no contest, or the foreign governmental equivalent thereof, is entered. We will not pay fines or restitution relating to any judgment or conviction against one or more of your “crew members” following a guilty plea or guilty verdict or any judgment following a plea of no contest, or the foreign governmental equivalent thereof.

A “foreign governmental entity” is any governmental agency, department, or ministry that is not related to any governmental body of the United States, its territories or possessions or any individual state agency or department of the United States.

“Reasonable criminal defense expenses” are those costs specific to the criminal defense of your crew members, including investigation and court costs.

A “crew member” means any person such as the pilot in command, co-pilot, flight engineer, flight attendant or anyone else who is in, on, or boarding the aircraft for the purpose of assisting in the operation of the aircraft.

Repatriation Coverage. We will pay up to $25,000 in the aggregate for expenses that you incur in transporting one or more of your employed “crew members” to the nearest port of entry in the United States following any criminal indictment or imposition of criminal charges imposed by a “foreign governmental entity” that arise out of an occurrence to which insurance under “Your Liability Coverage” applies. This coverage will not apply to expense incurred in transporting any of your employed “crew members” if that “crew member” has been convicted of or pled guilty to any of the charges or counts of the indictment imposed or has pled no contest to such charges or indictment, or the foreign governmental equivalent thereof.

If you have other insurance. If you and/or your crew members have other valid and collectible insurance covering an expense that’s also covered by this endorsement, then the insurance afforded under this endorsement shall be in excess of such other insurance, and we’ll, therefore, pay claims only when such other insurance has been exhausted. Other insurance includes any retained limit under any self insurance or deductible program you and/or your crew members have established. This restriction does not apply to any insurance you and/or your crew members purchased in excess of this endorsement


Potential Termination of TRIA Coverage


THIS ENDORSEMENT REDUCES YOUR COVERAGE FOR LOSS CAUSED BY CERTIFIED ACTS OF TERRORISM UNDER THE CIRCUMSTANCES DESCRIBED BELOW

If any of the following occur on or before January 1, 2015:

the federal Terrorism Risk Insurance Program (TRIP) effected under the Terrorism Risk Insurance Act as amended (TRIA) expires on December 31, 2014 and is not reauthorized and extended by the federal government; or

TRIP is extended with changes that redefine terrorism and we are not required to make such

revised coverage available to you; or

TRIP is extended with changes that make insurance coverage for terrorism subject to provisions or requirements that differ from those that apply to other events or occurrences under this policy, and we are not required to make such revised coverage available to you; or

TRIP is extended with changes that increase insurers’ statutory percentage deductible under

TRIP for terrorism losses, or decrease the federal government’s statutory percentage share in potential terrorism losses, and we are not required to make terrorism coverage available to you,

then, effective January 1, 2015, all coverage provided under the terms of your policy for “Certified Acts of Terrorism” or “Certified Terrorism Loss” will terminate and be of no further effect.

USAIG All-Clear Aircraft Management Policy Policy No. SIHL1-264U(A Several Liability Combination Policy)


Only with respect to Rolls-Royce Engine Lease Agreements (hereinafter the “Agreements”) between Executive Jet Management, Inc., and Rolls-Royce Corporation, dated “See Schedule”, copies of which areon file with the Aviation Managers, only to the extent required in the aforementioned “Agreements,” and only for the purpose of this endorsement:

1. The following sections under “Your Aircraft Physical Damage Coverage” are changed to read:

a. The “Limits of Coverage” for each engine shall be in addition to the “Limits of Coverage” for “Your Aircraft Physical Damage Coverage” and “Limited Write-Back of Coverage including Certified Terrorism Loss Coverage excluded by the War, Hi-jacking and Other Perils Exclusion Clause (Applicable to Your Aircraft Physical Damage Coverage)” and will be in the amount shown in the schedule below:

Schedule

See Attached Schedule

If “Your Aircraft Physical Damage Coverage” is subject to a deductible, the amount of the deductible shown on the Coverage Summary Page will apply.

b. Only with respect to coverage provided by this endorsement, the limit shown in Paragraph G, “Spare Engines and parts Coverage,” shown under the “”Aircraft Physical Damage Coverage” section of your policy, is changed to $See Schedule per engine in any one occurrence.

c. If Executive Jet Management, Inc. has other insurance covering a loss to the engine(s) scheduled above, the insurance provided by this endorsement shall be excess insurance. This section does not apply to any insurance purchased as specifically excess of this insurance. Excess insurance is insurance which becomes effective only when all other valid and collectible insurance covering the loss has been exhausted. Other insurance includes any retained limit under any self insurance or deductible program you have established.


d. Only with respect to the engine(s) scheduled above, the “Whom We will Pay” section appearing on the Coverage Summary Page is changed to read:

Whom We will Pay. Payments for loss covered under “Your Aircraft Physical Damage Coverage” that becomes payable as a total loss (less any deductible that applies) will be made payable to, or to the order of the Rolls-Royce Corporation. In respect of any other claims, settlement (less any deductible that applies) shall be made with such party(ies) as may be necessary to repair the engine unless otherwise agreed after consultation between the Named Insured and the Aviation Managers and, where necessary, under the terms of the agreement, Rolls-Royce Corporation.Such payments shall only be made provided they are in compliance with all applicable laws and regulations.


e. The “Rights against third parties” section of your policy shall not apply to Rolls-Royce Corporation with respect to claims resulting from your maintenance or use of the engine(s). However, this waiver will not apply to claims arising out of or from Rolls-Rolls-Royce Corporation’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreement” of any Rolls-Royce Corporation product or service.

Page 1 of 3 Pages

399 NetJets 0514 (360/400)



2. With respect to “Your Liability Coverage”:

a. The “Who's Covered” section of “Your Liability Coverage” shall include:

Rolls-Royce plc, Rolls-Royce Corporation, Omega Leasing (US) (No. 2) LLC, such financial institution(s) which from time to time participate in the funding of the Engine and/or for whose benefit security over, or rights relating to the Engine and/or the Insurances, and their respective successors and assigns, shareholders, members, affiliates, directors, officers, servants, agents and employees. (“Additional Insureds”)

to the extent of its rights and interest in the engine(s) described in endorsement 15.1, but only with respect to loss, injury or damage attributable to the negligence of Executive Jet Management, Inc. and only to the extent required in the “Agreement”. However, we will not cover the Additional Insureds for claims arising out of the Additional Insureds’ obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Additional Insured’s product or service.

b. “The “Limits of Coverage” appearing on the Coverage Summary Page are changed to read:


Combined Liability Coverage for $ 100,000,000 Each Occurrencebodily injury and property damageIncluding War, Hi-Jacking and Other Perils Exclusion Clause Limited Write-Back Provisions (Applicable to Your Liability Coverage and Your Medical Coverage)

Personal Injury $ 25,000,000 Each Occurrence and Aggregate (Part of and not in addition to “Combined Liability Coverage for bodily injury and property damage”)

c. The “Assumed liability” section of your policy appearing under the “Liability claims we won’t cover” will not apply to the “Agreements” between Executive Jet Management, Inc.and Rolls-Royce Corporation.

The insurance provided by this endorsement is primary and without right of contribution against any other insurance carried by or on behalf of Rolls-Royce Corporation. However, if there is any other insurance covering the loss that is also covered by this policy and: a) such other insurance is not issued to Rolls-Royce Corporation; and b) such other insurance is written through the Aviation Managers, the "Limits of Coverage" that applies under this endorsement will be reduced by the "Limits of Coverage" under such other insurance.

No act or omission by any person, including Executive Jet Management, Inc. shall void Coverage under this endorsement for Rolls-Royce Corporation provided Rolls-Royce Corporation did not consent to or acquiesce in such act or omission.

Coverage includes Severability of Interests.

Rolls-Royce Corporation shall have no responsibility for premium and the Aviation Managers shall waive any right of set-off or counterclaim against Rolls-Royce Corporation except in respect of outstanding premium in respect of the engine(s).

Page 2 of 3 Pages

399 NetJets 0514 (360/400)



If we or the Aviation Managers cancel your policy for any reason other than nonpayment of premium, we agree to give Rolls-Royce Corporation thirty (30) days notice before the cancellation date. However, the “Cancellation” provisions stated above shall not be less than the required statutory limits.

Additional premium for this endorsement is $Included

Page 3 of 3 Pages

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address.

Policy Issued to: Executive Jet Management, Inc.

June 6, 2014 12:01 A.M. Approved: United States Aviation Underwriters, IncorporatedDate and Hour Endorsement Effective Aviation Managers

15 By Endorsement No.

399 NetJets 0514 (360/400)

USAIG All-Clear Policy No. SIHL1-264U (A Several Liability Combination Policy) Loaned, Leased or Rented Spare Engine Agreement Endorsement

Page 1 of 3 Pages

399 NetJets 0514 (360/400)

Only with respect to Rolls-Royce Engine Lease Agreements (hereinafter the “Agreements”) between EJM and Rolls-Royce Deutschland Ltd & Co. KG, copies of which are on file with the Aviation Managers, only to the extent required in the aforementioned “Agreements” while engine(s) shown in the attached Schedule are installed on a EJM aircraft or in EJM’s possession under the aforementioned “Agreements,” and only for the purpose of this endorsement:


a. The “Limits of Coverage” for each engine shall be part of and not in addition to the “Limits of Coverage” for “Your Aircraft Physical Damage Coverage” and “Limited Write-Back of Coverage including Certified Terrorism Loss Coverage excluded by the War, Hi-jacking and Other Perils Exclusion Clause (Applicable to Your Aircraft Physical Damage Coverage)” and will be in the amount as shown in the attached Schedule. If “Your Aircraft Physical Damage Coverage” is subject to a deductible, the amount of the deductible shown on the Certificate will apply.

b. Only with respect to coverage provided by this endorsement, the limit shown in the “Spare engines and parts Coverage,” section of your policy under “Your Aircraft Physical Damage Coverage” is changed to $See Attached Schedule per engine in any one occurrence.

c. If EJM has other insurance covering a loss to the engine(s) shown in the attached Schedule, the insurance provided by this endorsement shall be excess insurance. This section does not apply to any insurance purchased as specifically excess of this insurance. Excess insurance is insurance which becomes effective only when all other valid and collectible insurance covering the loss has been exhausted. Other insurance includes any retained limit under any self insurance or deductible program you have established.


d. Only with respect to the engine(s) as shown in the attached Schedule while installed on a EJM aircraft or in EJM’s possession under a Rolls-Royce Engine Lease Agreement, the “Whom We’ll Pay” section appearing on the Coverage Summary Page is changed to read:

Whom We’ll Pay. Payments for loss covered under “Your Aircraft Physical Damage Coverage” that becomes payable as a total loss (less any deductible that applies) will be made payable to, or to the order of Rolls-Royce Deutschland Ltd & Co. KG as their interests may appear in the “Agreements.” In respect of any other claims, settlement (less any deductible that applies) shall be made with such party(ies) as may be necessary to repair the engine unless otherwise agreed after consultation between the Policyholder and the Aviation Managers and, where necessary, under the terms of the “Agreements,” Rolls-Royce Deutschland Ltd & Co. KG. Such payments shall only be made provided they are in compliance with all applicable laws and regulations.


e. The “Rights against third parties” section of your policy shall not apply to Rolls-Royce Deutschland Ltd & Co. KG with respect to claims resulting from your maintenance or use of the engine(s). However, this waiver will not apply to claims arising out of or from Rolls-Royce Deutschland Ltd & Co. KG’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Rolls-Royce Deutschland Ltd & Co. KG product or service.

USAIG All-Clear (A Several Liability Combination Policy) Loaned, Leased or Rented Spare Engine Agreement Endorsement

Page 2 of 3 Pages

399 NetJets 0514 (360/400)



Rolls-Royce Deutschland Ltd & Co. KG. (“Additional Insured”)

to the extent of its rights and interest in the engine(s) described in endorsement 16.1, but only with respect to loss, injury or damage attributable to the negligence of EJM and only to the extent required in the “Agreements”. However, we will not cover the Additional Insured for claims arising out of the Additional Insured’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Additional Insured’s product or service.



Combined Liability Coverage for $ 250,000,000 Each Occurrence bodily injury and property damage Including War, Hi-Jacking and Other Perils Exclusion Clause Limited Write-Back Provisions (Applicable to Your Liability Coverage and Your Medical Coverage)


c. The “Assumed liability” section of your policy appearing under the “Liability claims we won’t cover” will not apply to the “Agreements” between EJM and Rolls-Royce Deutschland Ltd & Co. KG.

The insurance provided by this endorsement is primary and without right of contribution against any other insurance carried by or on behalf of Rolls-Royce Deutschland Ltd & Co. KG. However, if there is any other insurance covering the loss that is also covered by this policy and: a) such other insurance is not issued to Rolls-Royce Deutschland Ltd & Co. KG; and b) such other insurance is written through the Aviation Managers, the "Limits of Coverage" that applies under this endorsement will be reduced by the "Limits of Coverage" under such other insurance.

No act or omission by any person, including EJM shall void Coverage under this endorsement for Rolls-Royce Deutschland Ltd & Co. KG, provided Rolls-Royce Deutschland Ltd & Co. KG did not consent to or acquiesce in such act or omission.


Rolls-Royce Deutschland Ltd & Co. KG shall have no responsibility for premium and the Aviation Managers shall waive any right of set-off or counterclaim against Rolls-Royce Deutschland Ltd & Co. KG except in respect of outstanding premium in respect of the engine(s).


Page 3 of 3 Pages

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Policyholder’s” address.


16 SIHL1-264U May 1, 2014 at 12:01 A.M.Endorsement No. Policy No. Date and hour endorsement takes effect

Approved: United States Aviation Underwriters, Inc., Aviation Managers

By

399 NetJets 0514 (360/400)

If we or the Aviation Managers cancel your policy for any reason other than nonpayment of premium, we agree to give Rolls-Royce Deutschland Ltd & Co. KG thirty (30) days notice before the cancellation date. However, the “Cancellation” provisions stated above shall not be less than the required statutory limits.

Additional premium for this endorsement is $Included.





16.1 SIHL1-264U May 1, 2014 at 12:01 A.M.Endorsement No. Policy No. Date and hour endorsement takes effect


By

399 NetJets 0514 (360/400)

Schedule

Engine Type ESN Limit of Coverage Each EngineBR710 11408

11409 12110 12465 12466 16003 16010 16015 16016

$ 8,408,050.00

BR725 25105 $ 9,330,994.00





16.2 SIHL1-264U September 24, 2014 at 12:01 A.M.Endorsement No. Policy No. Date and hour endorsement takes effect


By

399 NetJets 0514 (360/400)

Schedule

Engine Type ESN Limit of Coverage Each EngineBR710 11408

11409 12110 12465 12466 16010 16016 15963 15964 16065 16097 16098

$ 8,408,050.00

BR725 25105 $ 9,330,994.00



This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: Executive Jet Management, Inc. May 1, 2015 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 16.3 By Endorsement No. 399 NetJets 0514

Schedule

Engine Type ESN Limit of Coverage Each Engine BR710 11408

11409 12110 12465 12466 16010 16016 15963 15964 22526 22531 16067 16068 12496

$ 9,446,444.00

BR725 A1-12 25105

$ 9,984,164.00

TAY 611-8C 85656 85657 85688 85696 85697

$6,021,490


Page 1 of 3 Pages

399 NetJets 0514 (360/400)

Only with respect to Rolls-Royce Engine Lease Agreements (hereinafter the “Agreements”) between EJM and Rolls-Royce Leasing Limited, copies of which are on file with the Aviation Managers, only to the extent required in the aforementioned “Agreements” while engine(s) shown in the attached Schedule are installed on a EJM aircraft or in EJM’s possession under the aforementioned “Agreements,” and only for the purpose of this endorsement:







Whom We’ll Pay. Payments for loss covered under “Your Aircraft Physical Damage Coverage” that becomes payable as a total loss (less any deductible that applies) will be made payable to, or to the order of Rolls-Royce Leasing Limited as their interests may appear in the “Agreements.” In respect of any other claims, settlement (less any deductible that applies) shall be made with such party(ies) as may be necessary to repair the engine unless otherwise agreed after consultation between the Policyholder and the Aviation Managers and, where necessary, under the terms of the “Agreements,” Rolls-Royce Leasing Limited. Such payments shall only be made provided they are in compliance with all applicable laws and regulations.


e. The “Rights against third parties” section of your policy shall not apply to Rolls-Royce Leasing Limited with respect to claims resulting from your maintenance or use of the engine(s). However, this waiver will not apply to claims arising out of or from Rolls-Royce Leasing Limited’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Rolls-Royce Leasing Limited product or service.


Page 2 of 3 Pages

399 NetJets 0514 (360/400)



Rolls-Royce Leasing Limited (“Additional Insured”)

to the extent of its rights and interest in the engine(s) described in endorsement 17.1, but only with respect to loss, injury or damage attributable to the negligence of EJM and only to the extent required in the “Agreements”. However, we will not cover the Additional Insured for claims arising out of the Additional Insured’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Additional Insured’s product or service.





c. The “Assumed liability” section of your policy appearing under the “Liability claims we won’t cover” will not apply to the “Agreements” between EJM and Rolls-Royce Leasing Limited.

The insurance provided by this endorsement is primary and without right of contribution against any other insurance carried by or on behalf of Rolls-Royce Leasing Limited. However, if there is any other insurance covering the loss that is also covered by this policy and: a) such other insurance is not issued to Rolls-Royce Leasing Limited; and b) such other insurance is written through the Aviation Managers, the "Limits of Coverage" that applies under this endorsement will be reduced by the "Limits of Coverage" under such other insurance.

No act or omission by any person, including EJM shall void Coverage under this endorsement for Rolls-Royce Leasing Limited, provided Rolls-Royce Leasing Limited did not consent to or acquiesce in such act or omission.


Rolls-Royce Leasing Limited shall have no responsibility for premium and the Aviation Managers shall waive any right of set-off or counterclaim against Rolls-Royce Leasing Limited except in respect of outstanding premium in respect of the engine(s).


Page 3 of 3 Pages





By

399 NetJets 0514 (360/400)

If we or the Aviation Managers cancel your policy for any reason other than nonpayment of premium, we agree to give Rolls-Royce Leasing Limited thirty (30) days notice before the cancellation date. However, the “Cancellation” provisions stated above shall not be less than the required statutory limits.








By

399 NetJets 0514 (360/400)

Schedule

Engine Type ESN Limit of Coverage Each EngineTAY 611-8 16202

16203 $ 3,000,000.00

TAY 611-8C 85002 85020 85539 85312 85313 85339 85536 85613 85233 85529

$ 5,734,753.00





17.2 SIHL1-264U September 24, 2014 at 12:01 A.M.Endorsement No. Policy No. Date and hour endorsement takes effect


By

399 NetJets 0514 (360/400)

Schedule

Engine Type ESN Limit of Coverage Each EngineTAY 611-8 16202

16203 $ 3,000,000.00

TAY 611-8C 85002 85020 85312 85313 85339 85536 85613 85163 85656 85657 85670 85671

$ 5,734,753.00



This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: Executive Jet Management, Inc. May 1, 2015 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 17.3 By Endorsement No. 399 NetJets 0514 (360/400)

Schedule

Engine Type ESN Limit of Coverage Each Engine TAY 611-8 16202

16203

$ 3,000,000.00

TAY 611-8C 85002 85020 85312 85313 85339 85536 85613 85163

$ 6,021,490.00


Page 1 of 3 Pages

399 NetJets 0514 (360/400)

Only with respect to Rolls-Royce Engine Lease Agreements (hereinafter the “Agreements”) between EJM and Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited, copies of which are on file with the Aviation Managers, only to the extent required in the aforementioned “Agreements” while engine(s) shown in the attached Schedule are installed on a EJM aircraft or in EJM’s possession under the aforementioned “Agreements,” and only for the purpose of this endorsement:







Whom We’ll Pay. Payments for loss covered under “Your Aircraft Physical Damage Coverage” that becomes payable as a total loss (less any deductible that applies) will be made payable to, or to the order of Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited as their interests may appear in the “Agreements.” In respect of any other claims, settlement (less any deductible that applies) shall be made with such party(ies) as may be necessary to repair the engine unless otherwise agreed after consultation between the Policyholder and the Aviation Managers and, where necessary, under the terms of the “Agreements,” Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited. Such payments shall only be made provided they are in compliance with all applicable laws and regulations.


e. The “Rights against third parties” section of your policy shall not apply to Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited with respect to claims resulting from your maintenance or use of the engine(s). However, this waiver will not apply to claims arising out of or from Rolls-Royce Deutschland Ltd & Co. KG’s orRolls-Royce Leasing Limited’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited product or service.


Page 2 of 3 Pages

399 NetJets 0514 (360/400)



Rolls-Royce Deutschland Ltd & Co. KG, Rolls-Royce Leasing Limited, Omega Leasing (US) LLC, Alpha Leasing (US) LLC, such financial institution(s) which from time to time participate in the funding of the Engine and/or for whose benefit security over, or rights relating to the Engine and/or the Insurances, and their respective successors and assigns, shareholders, members, affiliates, directors, officers, servants, agents and employees. (“Additional Insureds”)

to the extent of its rights and interest in the engine(s) described in endorsement 18.1, but only with respect to loss, injury or damage attributable to the negligence of EJM and only to the extent required in the “Agreements”. However, we will not cover the Additional Insureds for claims arising out of the Additional Insureds’ obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Additional Insureds’ product or service.





c. The “Assumed liability” section of your policy appearing under the “Liability claims we won’t cover” will not apply to the “Agreements” between EJM and Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited.

The insurance provided by this endorsement is primary and without right of contribution against any other insurance carried by or on behalf of Rolls-Royce Deutschland Ltd & Co. KG orRolls-Royce Leasing Limited.However, if there is any other insurance covering the loss that is also covered by this policy and: a) such other insurance is not issued to Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited; and b) such other insurance is written through the Aviation Managers, the "Limits of Coverage" that applies under this endorsement will be reduced by the "Limits of Coverage" under such other insurance.

No act or omission by any person, including EJM shall void Coverage under this endorsement for Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited, provided Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited did not consent to or acquiesce in such act or omission.


Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited shall have no responsibility for premium and the Aviation Managers shall waive any right of set-off or counterclaim against Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited except in respect of outstanding premium in respect of the engine(s).


Page 3 of 3 Pages





By

399 NetJets 0514 (360/400)

If we or the Aviation Managers cancel your policy for any reason other than nonpayment of premium, we agree to give Rolls-Royce Deutschland Ltd & Co. KG or Rolls-Royce Leasing Limited thirty (30) days notice before the cancellation date. However, the “Cancellation” provisions stated above shall not be less than the required statutory limits.








By

399 NetJets 0514 (360/400)

Schedule

Engine Type ESN Limit of Coverage Each EngineBR710 GV11110

GV11111 GV11115 GV11140 GV11256 GV11296 GX12106 GV12155

$ 8,408,050.00

BR700-710A2-20 GV12107 GX12157

$ 8,408,050.00

TAY 611-8 16003 16004

$ 3,000,000.00




Schedule

Engine Type ESN Limit of Coverage Each Engine BR710 GV11110

GV11111 GV11115 GV11140 GV11256 GV11296 GX12106 GV12155

$ 9,446,444.00

BR700-710A2-20 GV12107 GX12157

$ 9,446,444.00

TAY 611-8 16003 16004

$ 3,000,000.00


Page 1 of 3 Pages

399 NetJets 0514 (360/400)

Only with respect to Rolls-Royce Engine Lease Agreements (hereinafter the “Agreements”) between EJM and Rolls-Royce Deutschland Ltd & Co. KG, copies of which are on file with the Aviation Managers, only to the extent required in the aforementioned “Agreements” while engine(s) shown in the attached Schedule are installed on a EJM aircraft or in EJM’s possession under the aforementioned “Agreements,” and only for the purpose of this endorsement:







Whom We’ll Pay. Payments for loss covered under “Your Aircraft Physical Damage Coverage” that becomes payable as a total loss (less any deductible that applies) will be made payable to, or to the order of Rolls-Royce Deutschland Ltd & Co. KG as their interests may appear in the “Agreements.” In respect of any other claims, settlement (less any deductible that applies) shall be made with such party(ies) as may be necessary to repair the engine unless otherwise agreed after consultation between the Policyholder and the Aviation Managers and, where necessary, under the terms of the “Agreements,” Rolls-Royce Deutschland Ltd & Co. KG. Such payments shall only be made provided they are in compliance with all applicable laws and regulations.


e. The “Rights against third parties” section of your policy shall not apply to Rolls-Royce Deutschland Ltd & Co. KG with respect to claims resulting from your maintenance or use of the engine(s). However, this waiver will not apply to claims arising out of or from Rolls-Royce Deutschland Ltd & Co. KG’s obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Rolls-Royce Deutschland Ltd & Co. KG product or service.


Page 2 of 3 Pages

399 NetJets 0514 (360/400)



Rolls-Royce Deutschland Ltd & Co. KG, Omega Leasing (US) (No. 4) LLC, Alpha Leasing (US) (No. 4) LLC, US Bank NA, such financial institution(s) which from time to time participate in the funding of the Engine and/or for whose benefit security over, or rights relating to the Engine and/or the Insurances, and their respective successors and assigns, shareholders, members, affiliates, directors, officers, servants, agents and employees. (“Additional Insureds”)

to the extent of its rights and interest in the engine(s) described in endorsement 19.1, but only with respect to loss, injury or damage attributable to the negligence of EJM and only to the extent required in the “Agreements”. However, we will not cover the Additional Insureds for claims arising out of the Additional Insureds’ obligation(s) as manufacturer, distributor or service provider other than services provided in connection with the “Agreements” of any Additional Insureds’ product or service.





c. The “Assumed liability” section of your policy appearing under the “Liability claims we won’t cover” will not apply to the “Agreements” between EJM and Rolls-Royce Deutschland Ltd & Co. KG.

The insurance provided by this endorsement is primary and without right of contribution against any other insurance carried by or on behalf of Rolls-Royce Deutschland Ltd & Co. KG. However, if there is any other insurance covering the loss that is also covered by this policy and: a) such other insurance is not issued to Rolls-Royce Deutschland Ltd & Co. KG; and b) such other insurance is written through the Aviation Managers, the "Limits of Coverage" that applies under this endorsement will be reduced by the "Limits of Coverage" under such other insurance.

No act or omission by any person, including EJM shall void Coverage under this endorsement for Rolls-Royce Deutschland Ltd & Co. KG provided Rolls-Royce Deutschland Ltd & Co. KG did not consent to or acquiesce in such act or omission.


Rolls-Royce Deutschland Ltd & Co. KG shall have no responsibility for premium and the Aviation Managers shall waive any right of set-off or counterclaim against Rolls-Royce Deutschland Ltd & Co. KG except in respect of outstanding premium in respect of the engine(s).


Page 3 of 3 Pages





By

399 NetJets 0514 (360/400)

If we or the Aviation Managers cancel your policy for any reason other than nonpayment of premium, we agree to give Rolls-Royce Deutschland Ltd & Co. KG thirty (30) days notice before the cancellation date. However, the “Cancellation” provisions stated above shall not be less than the required statutory limits.




Page 1 of 2

Schedule

Engine Type ESN Limit of Coverage Each EngineBR710 GV11119

GV11120 GV11125 GV11405 GV11414 GX12109 GV15113 GV15118 GV11504

$ 8,408,050.00

BR710 A1-10 11377 11378 11509 11510 11511

$ 8,408,050.00

BR710 A2-20 12175 12178 12841 12842 12692 12693 12940

$ 8,408,050.00

BR725 A1-12 25115 25116 25181

$ 9,330,994.00



Page 2 of 2





By

399 NetJets 0514 (360/400)

Engine Type ESN Limit of Coverage Each EngineBR710 C4-11 15133

15623 15622 15652 15653 15741 15742 15875 15876 15923 15924 15935 15936 15937 15940

$ 8,408,050.00



Page 1 of 2

Schedule

Engine Type ESN Limit of Coverage Each Engine BR710 GV11119

GV11120 GV11125 GV11405 GV11414 GX12109 GV15113 GV15118 GV11504

$ 9,446,444.00

BR710 A1-10 11377 11378 11509 11510 11511

$ 9,446,444.00

BR710 A2-20 12175 12178 12841 12842 12692 12693 12940

$ 9,446,444.00

BR725 A1-12 25115 25116 25181

$ 9,984,164.00




Engine Type ESN Limit of Coverage Each Engine BR710 C4-11 15133

15623 15622 15652 15653 15741 15742 15875 15876 15923 15924 15935 15936 15937 15940

$ 9,446,444.00


Anniversary Premium – Open Expiration Policy

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: Executive Jet Management, Inc. May 1, 2015 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 20 By Endorsement No. 238-1299

In accordance with the provisions of the “Open Expiration Policy” endorsement, the anniversary premium for the term May 1, 2015 to May 1, 2016 is $See Cover Letter.


Coverage Summary Page Amended

This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: Executive Jet Management, Inc. May 1, 2015 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 21 By Endorsement No. F360AM EJM 05/13

Your Coverages, as shown on the Coverage Summary Page of your policy are changed as follows: Limits of Your Coverage. You are insured up to the limits shown below. These limits may be altered by your policy or by any attached endorsements. Coverage Limits of Coverage Combined Liability Coverage for The amount set forth under the “Insured Owner’s Interest bodily injury and property damage Endorsement” attached to this policy. Personal Injury $ 25,000,000 Each Occurrence and Aggregate

(Part of and not in addition to “Combined Liability Coverage for bodily injury and property damage”)

Medical Coverage $ 200,000 Each Person Voluntary Settlement The amount set forth under the “Insured Owner’s Interest Endorsement” attached to this policy. Aircraft Physical Damage Coverage The amount set forth under the “Insured Owner’s Interest

Endorsement” attached to this policy. Unless stated otherwise, all sums shown in this policy are expressed in United States currency.



Page 1 of 2 Pages 393rf-1014 (360/400)

1. The following sections of your policy, under “Your Aircraft Physical Damage Coverage,” are changed to read as follows:

F. Trip interruption expense.

If your aircraft is damaged, and this policy covers the loss, we will reimburse the “Insured Owner” or their guests for reasonable expenses incurred for food, lodging and travel of passengers, excluding crew, from the location where the damage occurred to the intended final destination, or to the place where the aircraft originally departed, if the trip is discontinued. We will pay up to $250,000 for each passenger, excluding crew, in any one occurrence. You will be required to provide the Aviation Managers with duplicate invoices for all covered expenses within ninety (90) days from the date you incur the expenses.

We won’t cover any expenses under this section for food, lodging or travel of passengers unless these expenses are incurred as a result of damage to your aircraft which is covered under “Your Aircraft Physical Damage Coverage.” Coverage under this section is in addition to and not part of the “Limits of Coverage” shown on the Coverage Summary Page. Coverage applies only and separately to each aircraft shown on the “Insured Owner’s Interest Endorsement” attached to this policy.

I. Extra expense Coverage for temporary replacement parts.

If your aircraft is damaged and “Your Aircraft Physical Damage Coverage” covers the loss, we will reimburse you for the actual costs that you incur to lease or rent any temporary replacement parts, that exceeds the cost you would have incurred had you utilized your own parts, including the actual cost of installation, removal and transportation of such temporary replacement parts for the period required for actual repair of the original damaged part or parts. You should notify the Aviation Managers prior to incurring any costs for temporary replacement parts. The most we will pay for all costs under this Coverage is $6,000,000 for any one loss. Coverage for “extra expense for temporary replacement parts” is in addition to and not part of “Your Aircraft Physical Damage Coverage.”

You should notify the Aviation Managers prior to incurring any “extra expense.” Also, you will be required to provide the Aviation Managers with invoices and other documentation to support the claim for all covered “extra expenses” within ninety (90) days of the date you incur the “extra expenses.”

If “Your Aircraft Physical Damage Coverage” is subject to a deductible, the amount of the deductible shown on the “Insured Owner’s Interest Endorsement” will apply once to the physical damage to your aircraft, “extra expense” and, if applicable, “extra expense for temporary replacement parts” when combined together as one claim.



Page 2 of 2 Pages This endorsement does not change any of your coverage except as stated above. It is effective on the date and hour shown below, local Standard Time at the “Named Insured’s” address. Policy Issued to: Executive Jet Management, Inc. May 1, 2015 12:01 A.M. Approved: United States Aviation Underwriters, Incorporated Date and Hour Endorsement Effective Aviation Managers 22 By Endorsement No. 393rf-1014 (360/400)

2. The following section of your policy, under “Your Coverage For Newly Acquired Aircraft,” is changed

to read as follows:


1. replaces an aircraft described in the “Insured Owner’s Interest Endorsement”;

or


3. does not have a seating capacity in excess of sixty (60) passengers.


Liability Coverage:



Medical Coverage:








The “PARTICIPATING COMPANY SCHEDULE,” Form MC04-0413, attached to this policy is DELETED AND REPLACED by the following:

PARTICIPATING COMPANY SCHEDULE

THIS IS A COMBINATION POLICY THE LIABILITY OF THE COMPANIES IDENTIFIED BELOW IS SEVERAL (AND NOT JOINT).

LIST OF PARTICIPATING COMPANIES

Companies Pro Rata Share of Liability

ACE American Insurance Company 33.33%

General Reinsurance Corporation 33.34%

Liberty Mutual Insurance Company 33.33%



PARTICIPATING COMPANY SCHEDULE By signing this Schedule, each of the companies listed above hereby executes the policy to which the Schedule is attached and each endorsement and other attachment thereto, all of which have been signed on its behalf by the Aviation Managers.

ACE American Insurance Company Philadelphia, Pennsylvania

General Reinsurance Corporation Stamford, Connecticut

Liberty Mutual Insurance Company Boston, Massachusetts

Secretary

Secretary

Secretary President

President

President

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