RELATED EXCLUSION CLAUSE WAR HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE

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1 !"#$%&'()*+,-%./ PART A RELATED EXCLUSION CLAUSE No. 1. WAR HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE This Policy does not cover claims caused by (c) (d) (e) (f) (g) 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. 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. Strikes, riots, civil commotions or labour disturbances. 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. Any malicious act or act of sabotage. 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. Hijacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the aircraft acting without the consent of the Insured. Furthermore this policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured 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). AVN 48B ( ) 26

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3 No. 2. NUCLEAR RISKS EXCLUSION CLAUSE (1) This Policy does not cover: (i) (ii) loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from: (c) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof; 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; ionizing radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever. (2) It is understood and agreed that such radioactive material or other radioactive source in paragraph (1) and (c) above shall not include: (i) (ii) depleted uranium and natural uranium in any form; 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) This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which: (c) the Insured under this Policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy; or any person or organization is required to maintain financial protection pursuant to legislation in any country; or the Insured under this Policy is, or had this Policy not been issued would be, entitled to indemnification from any government or agency thereof. (4) Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph (2) shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that: 7 26

4 (i) (ii) (iii) (iv) 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; this Policy shall only apply to an incident happening during the period of this Policy and where any claim by the Insured against the Insurers or by any claimant against the Insured arising out of such incident shall have been made within three years after the date thereof; 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 9 Beta, gamma and low toxicity alpha emitters All other emitters the cover afforded hereby may be cancelled at any time by the Insurers giving seven days notice of cancellation. Maximum permissible level of non-fixed radioactive surface contamination (Averaged over 300cm 2 ) Not exceeding 4 Becquerels/cm² (10-4 microcuries/cm² ) Not exceeding 0.4 Becquerels/cm² (10-5 microcuries/cm²) AVN 38B

5 No. 3. NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE 1. This Policy does not cover claims directly or indirectly occasioned By happening through or in consequence of: (c) (d) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith; pollution and contamination of any kind whatsoever; electrical and electromagnetic interference; interference with the use of property; Unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation. 2. With respect to any provision in the policy concerning any duty of the Insurer to investigate or defend claims, such provision shall not apply and the Insurer shall not be required to defend: claims excluded by paragraph 1 or a claim or claims covered by the Policy when combined with any claims excluded by paragraph 1 (referred to below as Combined Claims ) 3. In respect of any Combined Claims, the Insurer shall (subject to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy: (i) (ii) damages awarded against the Insured and defense fees and expense incurred by the Insured 4. Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy. AVN.46B : 26

6 No. 4. DATE RECOGNITION EXCLUSION CLAUSE This 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 or occasioned by or in consequence of (whether directly or indirectly and whether wholly or partly): the failure or inability of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) accurately or completely to process, exchange or transfer year, date or time data or information in connection with any change of year, date or time; whether on or before or after such change of year, date or time; (c) any implemented or attempted change or modification of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) in anticipation of or in response to any such change of year, date or time, or any advice given or services performed in connection with any such change or modification; any non-use or unavailability for use of any property or equipment of any kind whatsoever resulting from any act, failure to act or decision of the Insured or of any third party related to any such change of year, date or time; and any provision in this Policy concerning any duty of Insurers to investigate or defend claims shall not apply to any claims so excluded AVN 2000A ; 26

7 No. 5. CONTRACTS (Rights of Third Parties) ACT 1999 EXCLUSION CLAUSE The rights of a person who is not a party to this insurance or reinsurance to enforce a term of this insurance or reinsurance and/or not to have this insurance or reinsurance rescinded, varied or altered without his consent by virtue of the provisions of the Contracts (Rights of Third Parties) Act 1999 are excluded from this insurance or reinsurance. AVN < 26

8 No. 6. ASBESTOS EXCLUSION CLAUSE This Policy does not cover any claims of any kind whatsoever directly or indirectly relating to, arising out of or in consequence of: (1) the actual, alleged or threatened presence of asbestos in any form whatsoever, or any material or product containing, or alleged to contain, asbestos; or (2) any obligation, request, demand, order, or statutory or regulatory requirement that any Insured or others test for, monitor, clean up, remove, contain, treat, neutralize, protect against or in any other way respond to the actual, alleged or threatened presence of asbestos or any material or product containing, or alleged to contain, asbestos. However, this exclusion shall not apply to any claim caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation. Notwithstanding any other provisions of this Policy, Insurers will have no duty to investigate, defend or pay defence costs in respect of any claim excluded in whole or in part under paragraphs (1) or (2) hereof. LSW 2488 AGM = 26

9 No. 7. NON - AVIATION LIABILITY CLAUSE This Policy does not cover the Insured's liability unless it arises from one or more of the following:- 1. Occurrences involving aircraft or parts or equipment relating thereto. 2. Occurrences arising at airport locations. 3. Occurrences arising at any other location in connection with the Insured's business of transporting passengers or goods by air. 4. Occurrences arising out of the supply of goods or services to others (i) in connection with the use and/or operation of aircraft (ii) involved in the air transport industry. AVN > 26

10 PART B ADDITIONAL CLAUSE No 1. AGREED VALUE CLAUSE It is hereby understood and agreed that in consideration of the insured Aircraft being covered on an Agreed Value basis all reference herein to replacement shall be deemed to be deleted but only in respect of claims adjusted on the basis of a total loss. In respect of claims adjusted on the basis of a total loss Insurers shall pay to the Insured the Agreed Value of the Aircraft as stated in the Policy Schedule less any applicable deductible. Insurers may, at their discretion, take the salvage of such Aircraft, together with all appropriate documents appertaining thereto, but in no event shall there be any abandonment to Insurers. The foregoing provision shall not apply to claims arising in respect of partial loss or damage where Insurers shall retain the right to repair, replace or make good as they deem expedient. AVN No 2. PREMIUM PAYMENT CLAUSE It is understood and agreed that the premium due at the inception of this Policy shall be payable in the following instalments: US$ (or RMB) US$ (or RMB) US$ (or RMB) US$ (or RMB) 25% of the Annual Premium payable before 25% of the Annual Premium payable before 25% of the Annual Premium payable before 25% of the Annual Premium payable before Notwithstanding any cancellation provision contained within the Policy, in the event that an instalment of premium is not paid by its due date Insurers shall have the right to terminate the cover afforded by the Policy to the Insured and any other party(ies) protected thereby, whether by endorsement or otherwise, by the giving of not less than Thirty (30) days notice in writing to the Insured. Notice shall be deemed to commence from the date such notice is given by the Insurers. AVN6A (Amended)? 26

11 No 3. PERSONAL INJURY LIABILITY EXTENSION The insurance provided by this Section II and III is extended to apply to such Insured s legal liability for damages awarded to any person arising out of one or more of the following offences committed during the Policy Period: (c) (d) (e) (f) False arrest, restraint, detention or imprisonment Malicious prosecution Wrongful entry, eviction or other invasion of the right of private occupancy Inadvertent discrimination with respect to withholding or refusal of transportation except with respect to overbooking The publication or utterance of a libel or slander or other defamatory or disparaging material in violation of an individual s right of privacy except publication or utterance in the course of or related to advertising, broadcasting or telecasting activities conducted by or on behalf of the Insured. Incidental medical malpractice error or mistake by a physician, surgeon, nurse, medical technician or other person performing medical services but only for or on behalf of the Insured in the provision of emergency medical relief. The following additional exclusions shall apply to the insurance provided by this Extension Coverage (1) liability assumed by the Insured under any contract or agreement (2) personal injury arising out of the wilful violation of penal statute or ordinance committed by or with the knowledge or consent of the Insured (3) personal injury arising out of offence above, (i) if the first injurious publication or utterance of the same or similar material was made prior to the effective date of this Insurance (ii) if such publication or utterance was made by or at the direction of the Insured with the knowledge of the false nature thereof (4) liability for personal injury sustained by any person directly or indirectly related to the past, present or potential employment of such person by the Insured. It is agreed that, except as specifically provided in the foregoing to the contrary, the coverage provided by this Extension coverage is only applicable in connection with the coverage provided under Section II and III of this Policy. 26

12 No 4. REASONABLE ACTS The coverage provided by this Policy will not be invalidated by any reasonable action by, at the direction of, or on behalf of the Insured for the purpose of protecting persons or property. No 5. CONTRACTUAL AGREEMENTS This Policy incorporates the requirements of contracts and/or agreements for the inclusion of additional Insureds, hold harmless agreements, indemnities, waivers of subrogation, breach of warranty provisions and other contractual agreements entered into by the Insured which fall within the scope of the Insured s normal operations. The requirements of contracts and/or agreements falling outside the scope of the Insured s normal operations which the Insured require to enter into during the Policy Period will be held covered hereunder subject to being agreed by Insurers thereafter. Nothing contained in this condition shall be considered to extend the coverage of this Policy to risks not otherwise insured hereunder. No 6. INADVERTENT ERRORS OR OMISSIONS Inadvertent errors, omissions or failure to give notice or advice to the Insurers as herein required shall not relieve the Insurers of liability under this Policy provided that such error, omission or failure shall be corrected as soon as discovered. No 7. UNAUTHORISED USE CLAUSE No claim under this Policy shall be rejected on the grounds that the Aircraft was used in a place or in a manner or by a person not permitted under the terms of this Policy provided such use was not authorised by the Insured and that the Insured had taken reasonable precautions to prevent such unauthorised use. Any consent given by an employee or agent of the Insured outside the normal scope of his authority shall be deemed not to be authorisation given by the Insured. AVN77( )/ LSW706 ( 12/93) 6 26

13 No 8. RANSOM AND EXTORTION EXTENSION COVERAGE Subject always to the applicable limit set forth in the Policy Schedule the Insurers will pay on behalf of the Insured ninety per cent (90%) of: any payment properly made by the Insured in respect of any ransom or extortion demand or the like arising out of threats against persons or property; or extra expenses necessarily incurred arising out of such threats whether any ransom or extortion or the like be paid or not. No cover shall be provided in any territory where such insurance is not lawful, and the Insured is at all times responsible for ensuring that no arrangements of any kind are made which are not permitted by the proper authorities. It is warranted that ten per cent (10%) of any payment made or expenses incurred under the terms of this Extension Coverage shall be retained by the Insured uninsured. the existence of this Coverage shall not be revealed by personnel responsible for insurance matters to any person other than board members and directors of the Insured. The limit of the Insurer Liability shall not exceed US$ any one incident. No 9. CROSS LIABILITY -01 The inclusion of more than one Insured in this Policy shall not affect the rights of any Insured as respects any claim or suit by any other Insured, or by any employee of such other Insured. The Policy shall insure each Insured in the same manner as though a separate policy had been issued to each and the Insurers hereby agree to waive all rights of subrogation which they may have or acquire against any party insured hereon arising out of an Occurrence in respect of which any claim is made hereunder. Provided nevertheless that nothing contained herein shall operate to increase the Insurers liability as set forth in the Policy Schedule beyond the amount or amounts for which the Insurers would have been liable if only one Insured had been named. No 10. CROSS LIABILITY CLAUSE -02 In consideration of an additional premium of the inclusion of Additional Insureds under this Policy shall not preclude the right of recovery hereon by the Original Insured named below in respect of claims made against them by such Additional Insureds or the employees of such Additional Insureds. 7 26

14 Where the coverage provided by this Policy is also provided by other policy or policies, then this Policy shall only pay that amount which is in excess of the amount(s) which would have been payable under such other policy(ies) had this insurance not been effected. Notwithstanding the inclusion herein of more than one Insured, whether by endorsement or otherwise, the total liability of the Insurers in respect of any or all Insureds shall not exceed the limit(s) of liability stated in this Policy. Original Insured: AVN No 11. FERRY FLIGHT AND WARRANTY CLAUSE It is understood and agreed the risks covered as listed in the Item 3 Column-7 of the SCHEDULE may be extended to include the risk of the Ferry Flight performed by Insured under this policy subject to all the Policy terms conditions exclusions limitations and the SCHEDULE with an additional premium charged at the rate of % per flight on the Amount Insured of the aircraft Agreed Value but subject to the R/I Warranty Clause as follows: The insured aircraft should not be covered by this policy during its flight unless the underwriters have been notified of the details of the pilots and the routs and the insurer has confirmed the voyage hold covered. No 12. CANCELLATION CLAUSE 1. This Policy may be cancelled by the Insured by surrender thereof by forwarding to the Insurers written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Insurers by forwarding by registered mail to the Insured, written notice stating when not less than thirty days thereafter such cancellation shall be effective. 2. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and hour of cancellation stated in the notice shall become the end of the Policy Period. Delivery of such written notice either by the Insured or by the Insurers shall be equivalent to mailing. 3. If this Policy is cancelled by the Insured the Insurers shall retain the short rate proportion of the annual premium for the period during which such cancellation is effective calculated in 1 month on 20% annual premium 6 month on 70% annual premium 2 month on 30% annual premium 7 month on 75% annual premium 3 month on 40% annual premium 8 month on 80% annual premium 4 month on 50% annual premium month on 85% annual premium 5 month on 60% annual premium Over 9 equivalent to Annual

15 accordance with the following scale: 4. If this Policy is cancelled by the Insurers they shall return pro rata of the annual premium for the period during which such cancellation is effective. No 13. PILOT INDEMNITY CLAUSE -01 It is hereby understood and agreed that Sections II (Legal Liability to Third Parties other than passengers) and III (Legal Liability to Passengers) of this Policy are extended to indemnify as if he were the Insured any pilot described in the Schedule of the Policy in respect of injury or damage as set forth in the relative section, but not so as to increase the liability hereunder beyond the amount which would otherwise be payable under this policy in respect of such injury or damage had liability devolved upon the Insured. PROVIDED ALWAYS THAT:- 1. At the time of any accident giving rise to a claim under this clause the said pilot: Shall as though he were the Insured, observe, fulfil and be subject to the terms, conditions and exclusions contained in the Policy so far as they can apply, and, is not entitled to indemnity under any other policy. 2. For the purpose of this extension the word "Insured" wherever it appears in the exclusions contained in Sections II and III shall be understood to mean:- the Insured named in the Policy and/or any pilot described in the Policy 3. There shall be no indemnity under this clause in respect of claims by the Insured. LSW 701 (12/93) No 14. PILOT INDEMNITY CLAUSE The Sections of this Policy covering bodily injury liability, including to passengers, and property damage liability are extended to cover, as if he/she were the Insured, any pilot authorised by the Insured under the terms of the Policy in respect of injury or damage arising out of the operation of the Aircraft described in : 26

16 the Schedule to the Policy, but not so as to increase the liability of Insurers beyond the amount which would otherwise have been payable under this Policy had liability been incurred by the Insured. Provided always that 1. At the time of any accident giving rise to a claim under this Clause the said pilot shall as though he/she were the Insured, observe, fulfil and be subject to the terms, conditions and exclusions contained in the Policy, and is not entitled to indemnity under any other policy. 2. There shall be no indemnity under this Clause in respect of claims made against the pilot by the Insured and/or with respect to the Aircraft described in the Schedule to the Policy. AVN No 15. INDEMNITY TO PILOTS AND CREW -01 It is hereby understood and agreed that notwithstanding exclusion 2 of Section III of this Policy (Legal Liability to Passengers) coverage hereon shall extend to include the Insured's Legal Liability as defined in Section III to pilots and/or crew of the insured aircraft, but excluding liability required to be insured under the terms of any Workmen's Compensation Act or Employers Liability legislation LSW700 (12/93) No 16. LIABILITY TO PILOTS AND CREW CLAUSE -02 It is understood and agreed that notwithstanding any exclusion specifically relating to pilots and operational crew in the Section of this Policy covering the liability of the Insured to passengers, such coverage shall extend to include the liability of the Insured to the pilots and operational crew of the insured Aircraft, but excluding liability required to be insured under the terms of any employers' liability or workman's compensation legislation or any similar legislation. AVN No 17. SUPPLEMENTARY PAYMENTS CLAUSE -01 ; 26

17 It is hereby understood and agreed that this policy is extended to include cover as more fully set forth in paragraph(s),, (c) and (d) below. It being clearly understood that no cover is provided under those sections of this clause which have not been identified above. The Insurers agree to indemnify the Insured for:- (c) (d) any reasonable expenses incurred for the purpose of search and rescue operations for an aircraft insured hereunder determined to be missing and unreported after the computed maximum endurance of the flight has been exceeded. any reasonable expenses incurred for the purpose of runway foaming to prevent or mitigate possible loss or damage because of malfunction or suspected malfunction of an aircraft insured hereunder. any reasonable expenses incurred for the purpose of attempted or actual raising, removal, disposal or destruction of the wreck of an aircraft insured hereunder and the contents thereof. any reasonable costs and expenses which the Insured may be called upon to pay in respect of any public enquiry or enquiry by the Civil Aviation Authority or any other relevant authority into an incident involving the insured aircraft. Provided always that Insurers' liability shall not exceed 10% of the aircraft agreed value any one loss and in the aggregate in respect of all claims during the Policy Period. LSW 705 (12/93) No 18. SUPPLEMENTARY PAYMENTS CLAUSE -02 It is understood and agreed that this Policy is extended to cover as more fully set forth under those paragraph(s) identified below. It is expressly understood that no cover is provided under those paragraphs of this Clause which have not been identified below. The Insurers agree to indemnify the Insured for any reasonable expenses incurred for the purpose of search and rescue operations for an Aircraft insured hereunder determined to be missing and unreported after the computed maximum endurance of the flight has been exceeded; any reasonable expenses incurred for the purpose of runway foaming to prevent or mitigate possible loss or damage because of malfunction or suspected malfunction of an Aircraft insured hereunder; < 26

18 (c) (d) any reasonable expenses incurred for the purpose of attempted or actual raising, removal, disposal or destruction of the wreck of an Aircraft insured hereunder and the contents thereof; any reasonable expenses which the Insured may be called upon to pay in respect of any public inquiry or inquiry by the Civil Aviation Authority or any other relevant authority into an Accident involving an Aircraft insured hereunder. Coverage is provided under paragraphs above. Provided always that Insurers' liability shall not exceed aggregate over all paragraphs insured. in the AVN No 19. AUTOMATIC ADDITIONS AND DELETIONS CLAUSE 1. It is understood and agreed that this Policy is automatically extended to include at pro rata additional premium further Aircraft added during the currency of this Policy provided such Aircraft are owned or operated by the Insured, subject to a maximum agreed value of US$ (or currency equivalent). 2. The inclusion of additional Aircraft of greater values shall be subject to special agreement and rating by Insurers prior to attachment. 3. Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium. 4. Always provided that notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1 and 3 respectively shall be given to the Insurers or their representatives as soon as practicable. SUBJECT TO THE POLICY TERMS, CONDITIONS, LIMITATIONS AND EXCLUSIONS No 20. ADDITIONS, DELETIONS, SUBSTITUTIONS OF AIRCRAFT, AGREED VALUE AND PASSENGER SEATING AMENDMENTS 1. The insurance afforded by this policy is automatically extended to include at pro rata additional premium further aircraft added or substituted during the currency of this policy provided such aircraft are owned or operated by the Insured, and are of an agreed value not exceeding US$ covered hereunder. any one aircraft and of no greater seating capacity than already = 26

19 2. The inclusion of additional aircraft of greater values and seating capacities shall be subject to prior agreement and rating by the Insurers. 3. Aircraft which have been sold or disposed of shall be deleted from this policy and the Insured shall be entitled to pro rata return of premium provided (with respect only to section one) no claim has arisen and become payable under section one of this policy in respect of such aircraft on the basis of a total, constructive total, or arranged total loss and that this policy is not cancelled by virtue of such deletion. 4. Increases and decreases in the agreed values of the aircraft insured hereunder and amendments to the declared passenger seating capacity of aircraft insured hereunder (not exceeding a maximum agreed value of US$ and a seating capacity already covered hereunder) are automatically agreed. 5. Notice of the addition, deletion or substitution of any aircraft or amendment to the agreed value or declared seating capacity under the provisions of clauses 1, 3, and 4 respectively shall be given to the Insurers at expiry. Premium adjustment shall be made at expiry. No 21. AIRCRAFT LAYING-UP RETURNS CLAUSE In the event of the Aircraft hereby insured being laid up, the Flight and Taxing cover under all Sections of this insurance will be suspended during the period of lay-up and credit therefor will be adjusted on expiry of this insurance subject to the following conditions:- 1. Notice must be given to the Insurers upon termination of lay-up. 2. No return of premium shall be made:- in respect of the period of the annual renewal of the Certificate of Airworthiness including any work necessitated thereby unless the period of lay-up is of at least 30 consecutive days, but should the period defined in occur during lay-up then the Insured shall be entitled to add the lay-up days prior to and subsequent to the period defined in in computing the period of 30 days or more for which a return may be made (c) if a claim in respect of the Aircraft concerned has been made on this insurance. Subject always to the foregoing conditions the return shall be 75 per cent of pro rata of the difference between the annual hull risk premium and the annual ground risk premium (as agreed by the Insurers) for the actual period of lay-up as defined above. In the event of the Aircraft being laid up for a period of 30 consecutive days or more, a part only of which attaches to this insurance and part to the annual renewal insurance, then this insurance shall return > 26

20 premium for such proportion of the total period of lay-up as the number of days attaching hereto bears to such total period. AVN 26 (Amended) ? 26

21 PART C RELATED EXTENSION COVERAGE CLAUSE No 1. EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES) 1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of US$, it is hereby understood and agreed that with effect from, all sub-paragraphs other than of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement. 2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph of Clause AVN 48B. Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft. 3. LIMITATION OF LIABILITY The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be US$ or the applicable policy limit whichever the lesser any one Occurrence and in the annual aggregate (the sub-limit ). This sub-limit shall apply within the full Policy limit and not in addition thereto. To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured s liability: to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft; for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft. 6 26

22 4. AUTOMATIC TERMINATION To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances: (i) (ii) (iii) All cover - upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People s Republic of China, the Russian Federation, the United Kingdom, the United States of America Any cover extended in respect of the deletion of sub-paragraph of Clause AVN 48B - 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 wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved All cover in respect of any of the Insured Aircraft requisitioned for either title or use - upon such requisition PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked. 5. REVIEW AND CANCELLATION Review of Premium and/or Geographical Limits (7 days) Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from hours GMT on the day on which notice is given. Limited Cancellation (48 hours) Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from hours GMT on the day on which notice is given. (c) Cancellation (7 days) 66 26

23 The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from hours GMT on the day on which such notice is given. (d) Notices All notices referred to herein shall be in writing. AVN 52E

24 No 2. DATE RECOGNITION LIMITED COVERAGE CLAUSE WHEREAS the Policy of which this Endorsement forms part includes the Date Recognition Exclusion Clause (Clause AVN 2000A), it is hereby understood and agreed that, subject to all terms and provisions of this Endorsement, Clause AVN 2000A shall not apply: (1) to any accidental loss of or damage to an aircraft defined in the Policy Schedule ( Insured Aircraft ); (2) to any sums which the Insured shall become legally liable to pay, and (if so required by the Policy) shall pay (including costs awarded against the Insured) in respect of: (c) accidental bodily injury, fatal or otherwise, to passengers caused by an accident to an Insured Aircraft; and/or loss of or damage to baggage and personal articles of passengers, mail and cargo caused by an accident to an Insured Aircraft; and/or accidental bodily injury, fatal or otherwise, and accidental damage to property caused by an Insured Aircraft or by any person or object falling therefrom. PROVIDED THAT: 1. Coverage provided pursuant to this Endorsement shall be subject to all terms, conditions, limitations, warranties, exclusions and cancellation provisions of the Policy (except as specifically provided herein), and nothing in this Endorsement extends coverage beyond that which is provided by the Policy. 2. Nothing in this Endorsement shall provide any coverage: in respect of grounding of any aircraft; and/or in respect of loss of use of any property unless it arises out of physical damage to or destruction of property in the accident giving rise to a claim under the Policy. 3. The Insured agrees that it has an obligation to disclose in writing to the Insurers during the Policy period any material facts relating to the Date Recognition Conformity of the Insured s operations, equipment and products. AVN 2001A (Applicable to Hull and Aircraft Liability Coverage) 68 26

25 No 3. DATE RECOGNITION LIMITED COVERAGE CLAUSE WHEREAS the Policy of which this Endorsement forms part includes the Date Recognition Exclusion Clause (Clause AVN 2000A), it is hereby understood and agreed that, subject to all terms and provisions of this Endorsement, Clause AVN 2000A shall not apply to any sums which the Insured shall become legally liable to pay, and (if so required by the Policy) shall pay (including costs awarded against the Insured) in respect of: (1) accidental bodily injury, fatal or otherwise, or loss of or damage to property caused by an aircraft accident occurring during the Policy period and arising out of a risk insured under the Policy; and/or (2) accidental bodily injury, fatal or otherwise, or loss of or damage to property caused by an accident, other than an aircraft accident, occurring during the Policy period and arising out of a risk insured under the Policy. For the avoidance of doubt, solely for the purposes of this paragraph (2) and without prejudice to the meaning of the words in any other context, bodily injury shall mean only physical corporeal injury and unless arising directly therefrom shall not include mental or psychological injury. PROVIDED THAT: 1. Coverage provided pursuant to this Endorsement shall be subject to all terms, conditions, limitations, warranties, exclusions and cancellation provisions of the Policy (except as specifically provided herein), and nothing in this Endorsement extends coverage beyond that which is provided by the Policy. 2. Nothing in this Endorsement shall provide any coverage : applying in excess of any scheduled underlying insurance and/or in respect of any non aviation risks; and/or in respect of grounding of any aircraft; and/or (c) in respect of loss of use of any property unless it arises out of physical damage to or destruction of property in the accident giving rise to a claim under the Policy. 3. The Insured agrees that it has an obligation to disclose in writing to the Insurers during the Policy period any material facts relating to the Date Recognition Conformity of the Insured s operations, equipment and products. AVN 2002A (Applicable to non Aircraft Liability only) SUBJECT TO THE POLICY COVERAGE, TERMS, CONDITIONS, LIMITATIONS AND EXCLUSIONS 6: 26

26 No 4. FERRY FLIGHT ENDORSEMENT The term FERRY/DELIVERY FLIGHT shall be understood to mean the period of time commencing when the pilot enters the aircraft for the purpose of taking off for the specific flight, for which this Insurance is provided (including any intervening period whilst on the ground incidental to the flight in question) and ending at the time the pilot has descended from the aircraft after the aircraft has completed its landing run at the airfield of delivery at the conclusion of said flight. NOTWITHSTANDING the above, this endorsement is extended to include not exceeding two hours familiarisation flights prior to the commencement of the Ferry Flight provided such familiarisation flights are effected not more than forty-eight hours prior to the date of the commencement of the ferry flight. IN NO EVENT, HOWEVER, shall the insurance granted by this endorsement extend beyond with the exception that, if due to "Force Majeure" the flight for which this endorsement provides insurance is prolonged beyond the said date (or limit of time), or if prior notice be given to Underwriters of an extension otherwise required by the Insured, then such insurance will be automatically extended at terms to be agreed. The FERRY FLIGHT SUBJECT TO THE FOLLOWING: Aircraft: Pilots: Date: SUBJECT OTHERWISE to the terms, conditions and limitations of the policy to which this endorsement is attached. 6; 26