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HomeMy WebLinkAboutContracts & Agreements_6-20 AIRAIRPORT HANGAR RENTAL AGREEMENT This airport hangar rental agreement ("Agreement") is made and entered into this 1st day of February, 2020 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City"), and John C Van Blarcom ("Tenant") City and Tenant are sometimes individually referred to herein as a "Party" and, together, as the "Parties " 1. PREMISES City hereby rents to Tenant, and Tenant hereby rents from City, that certain hangar designated as Hangar No 4 the "Premises"), located at the Redlands Municipal Airport ("Airport"), and more particularly described in Exhibit "A" attached hereto and incorporated by this reference This Agreement for rental of the Premises is for the principal purpose of a commercial aviation related business, primarily aircraft and hangar maintenance and repair, and any incidental aviation related uses associated therewith The Tenant's aircraft(s) is identified as a Beechcraft BE58, Registration No N125TC, and aby identical aviation related uses associated therewith 2. TERM The term of this Agreement shall be month-to-month commencing on the Effective Date, and in no event shall exceed two (2) years 3 CONSIDERATION 3 1 Monthly Rental Payments. Tenant shall pay to City on or before the 15th day of each month during the term of this Agreement as monthly rent, without deduction, setoff or demand, the sum of seven hundred ten ($690) A late fee shall be levied in the amount of ten percent (10%) of the amount due for any amount not received by the date such rent is due The City will increase rent annually, the 1st of January each calendar year, based on percentage increase in the Consumer Price Index, all urban consumers, Riverside -San Bernardino -Ontario 3 2 Manner of Payment of Rent Monthly rent for any partial month shall be prorated at the rate of 1 /30th of the monthly rent per day The monthly rent and any applicable late charges payable by Tenant hereunder shall be paid by Tenant without notice, demand or offset at the office of the Airport Manager at the Airport, or at such other place as may from time to time be designated by City 3 3 Taxes and Assessments. 3.3.1 Obligation to Pay Tenant is responsible for and shall pay all real and personal property taxes (including any tax levied on a possessory interest, as defined in California Revenue and Taxation Code Section 107 or successor statute, if applicable), general and special assessments, and other charges of every description, levied on or assessed against the Premises, personal property located on the land or improvements, the leasehold estate, or any subleasehold estate, falling due during the term of this Agreement It shall be conclusively presumed that any aircraft stored at the Premises pursuant to this Agreement shall be considered "habitually situated" therein as that term is defined in Revenue and Taxation Code section 5362 Tenant shall make all such payments directly to the assessing authority, before delinquency and before any fine, interest or penalty shall become due or be imposed by operation of law for their nonpayment Jack V1n Blarcotn Hangar Lease 4 comments CBS 3232020 1 3 3 2 Proration for Partial Year Any imposition of taxes referred to in Section 3 3 1 above relating to a fiscal period of a taxing authority, a part of which period is included within the term of this Agreement and a part of which is included in a period of time before the Effective Date or after the termination of this Agreement, shall be paid by Tenant as above but shall be prorated with City 3 3 3 Tenant's Right to Contest. Tenant may contest the legal validity or amount of any taxes, assessments or charges for which Tenant is responsible under this Agreement, and may institute such proceedings as Tenant considers necessary If Tenant contests any such tax, assessment or charge, Tenant may withhold or defer payment, or pay under protest, but shall protect City and the Premises from any hen by adequate surety bond or other appropriate security 3 3 4 Proof of Compliance Upon the request of City, Tenant shall furnish to City receipts or other appropnate evidence establishing payment of any applicable tax, assessment or charge Tenant may comply with this requirement by retaining a tax service to notify City payment of any applicable tax, assessment or charge 4 USE OF PREMISES 4 1 Use of Hangar The Premises shall be used and occupied by Tenant principally for the storage of at least one airworthy aircraft, registered with FAA and or an aircraft under construction or repair with documented progress toward airworthiness every 90 days submitted to REI airport manager Other related aviation business, training/instruction, maintenance and or manufactunng uses are permitted upon REI approval No other commercial activity of any kind whatsoever shall be conducted by Tenant in or around the Premises Tenants of hangars without airworthy aircraft are subject to lease cancellation and eviction Tenant shall not use the Premises for sleeping or temporary living quarters Tenant shall keep the Premises clean and free of debris at all times and shall not do anything on the Premises that will cause damage to the Premises or unreasonable annoyance to owners or occupants of adjacent properties Upon termination of this Agreement, Tenant shall immediately surrender possession of the Premises and shall remove the Aircraft and all other property therefrom, leaving the Premises in the same condition as when received, ordinary wear and tear and improvements made by Tenant excepted Tenant shall be liable for any and all damage to the Premises caused by Tenant's use, including, without limitation, bent or broken interior walls, damage to unsealed floors due to fuel oil spillage, or doors damaged due to Tenant's improper or negligent operation 4 2 Compliance with Laws. In utilizing the Premises dunng the term of this Agreement, Tenant shall comply with all applicable statutes, ordinances, rules and regulations established by any federal, state, county or local government agency 4.3 Waste Disposal Tenant shall dispose of alI sewage and industrial waste in accordance with all applicable regulations and laws of those governmental agencies havingjurisdiction or authority thereover Tenant shall ensure that all solid waste materials are placed in appropriate covered containers designed for use with the type of waste involved, which shall remain covered, and locked, and that such containers remain located on the Premises and not moved from their location for kick Vin l3larcom Hangar Lease 4 comments CBS 3232020 2 any reason Tenant shall cooperate with City to provide for the proper separation of waste to maximize recycling 4.4 Hazardous Materials A For the purpose of this Section 4 4, the terin "Hazardous Materials" includes, without limitation, any flammable explosives, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U S C §9601 et seq ), the Hazardous Materials Transportation Act, as amended (49 U S C § 180 I et seq ), the Resource Conservation and Recovery Act of 1976, as amended (42 U S C §9601 et seq ), Section 25117 of the California Health & Safety Code, Section 25316 of the California Health & Safety Code, and in the regulations adopted and publications promulgated pursuant to them, or any other federal, state or local environmental Iaws, ordinances, rules or regulations concerning the environment, industrial hygiene or public health or safety now in effect or enacted after the Effective Date B Any Hazardous Materials brought upon, kept or used in or about the Premises or the Airport by Tenant, its agents, employees, contractors or invitees, shall be necessary or useful to Tenant's business and shall be used, kept and stored in a manner that complies with all laws, statutes, ordinances, rules, regulations, orders, requirements, and policies of any and all governmental agencies and authorities applicable to any such Hazardous Matenals ("Hazardous Materials Laws") C If Tenant breaches the obligations stated in subparagraph (b) of this Section 4 4, or if the presence of Hazardous Materials on the Prenuses results m contamination of the Premises or the Airport, or if Hazardous Materials are otherwise discharged or released from the Premises, then Tenant shall indemnify, defend and hold City harmless from and against any and all claims, judgments, damages, penalties, fines, costs, liabilities and losses (including, without limitation, diminution in value of the Airport, damages for the loss or restriction on use of rentable or usable space or of any amenity of the Airport, damages arising from any adverse impact on marketing of space in the Airport, and sums paid in settlement of claims, attorneys' fees, consultant fees and expert fees) which arise dunng or after the term of this Agreement as a result of such breach, contamination, discharge or release This indemnification of City by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by any federal, state or local governmental agency or political subdivision because of Hazardous Materials present In, on or under the Premises Without limiting the foregoing, if the presence of any Hazardous Matenals on the Premises results in any contamination of the Airport, or otherwise results in the release or discharge on, under or from the Premises of Hazardous Materials, Tenant shall promptly take all actions at its sole expense as are necessary to return the Airport to the condition existing prior to the introduction of any such Hazardous Materials to the Airport or to otherwise remove and/or abate the release or discharged Hazardous Materials, provided that City's approval of such actions shall first be obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Airport, will not unreasonably interfere with the use and enjoyment of other portions of the Airport, and will be performed in accordance with all Hazardous Materials Laws Upon the termination of this Jack Van Blare= Hangar Lease 4 comments CBS 3232020 3 Agreement, Tenant shall surrender the Premises to City free of any and all Hazardous Matenals and in compliance with all Hazardous Materials Laws This indemnification shall survive the termination or expiration of this Agreement 4 5 Billboards and Signs. Tenant shall not construct, install, maintain, nor allow upon the Premises any billboards, signs, banners or like displays which may be placed in or upon any building or structure in such manner as to be visible from the outside thereof, except with the prior written consent of City 4 6 Waste Nuisance. Tenant shall not use the Premises in any manner that will constitute waste, nuisance or unreasonable annoyance to owners or occupants of adjacent properties Tenant shall not use the Premises for sleeping, washing clothes, cooking or the preparation of food, manufacture or mixing of anything that might emit any odor or objectionable noises or lights onto adjacent properties Tenant shall not do anything on the Premises that will cause damage to the Premises 4 7 Access Locks Keys Combinations. Tenant shall comply with all reasonable regulations and directives of City regarding access to the Premises City may enter the Premises without permission of, or supervision by, Tenant for inspection or emergency purposes (i e fire, burglary, flooding, criminal activity, or other catastrophe) determined reasonably necessary by City or required by law, including but not limited to five-year fire sprinkler inspections, maintenance work that requires entrance by City, or any other reason to lawfully enter the Premises City shall subsequently notify Tenant of any entry for emergency purposes and the reason for the entry if the Tenant was unable to supervise such entry City reserves the right to limit Tenant's access to the Airport or the Premises, or both, due to any terrorist threat, civil unrest, any unsafe condition, or for the safety and protection of persons and property City shall not be responsible for Tenant's inability to access the Airport or the Premises due to events or acts beyond the control of City Tenant shall utilize City furnished set of locks for secunng the Premises if available If unavailable, Tenant shall furnish City's Airport Manager with a duplicate set of keys or lock combination for the locks securing the Premises City shall secure keys and lock combinations from access or exposure by unauthorized individuals and will notify Tenant immediately in the event of any compromise of keys and lock combinations If utilizing City provided locks, the Tenant shall notify the City immediately in the event of any compromise of keys and lock combinations The City shall only be liable to Tenant for damage resulting from gross negligence in accessing Premises 4.8 Requests from Department Tenant shall cooperate with any reasonable request from the City's Facilities & Community Services Department Director, or their designee, regarding use or operations at the Airport 5 MAINTENANCE, ALTERATIONS. 5 1 As -Is Condition Tenant hereby acknowledges that neither City nor anyone acting for or on behalf of City, has made any representation, warranty or promise to Tenant concerning the physical aspects or condition of the Premises or improvements, the feasibility, desirability or convertibility of the Premises into any particular use, the conditions of the soil, ground water, or surface waters or the presence or absence of any toxic waste or hazardous substances or material, and that by entenng into this Agreement has not relied on any representation, statement or warranty of City, or anyone acting for or on behalf of City, and that all matters concerning the Premises shall be independently verified by Tenant, and that Tenant shall rent the Premises on Tenant's own examination thereof, AND THAT TENANT IS LEASING THE PREMISES IN "AS IS" PHYSICAL CONDITION Jack Van Blarcom Hangar Lease 4 comments CBS 3232020 4 AND "AS IS" STATE OF REPAIR Tenant hereby waives and City hereby disclaims all warranties of any or kind of description, including, without limitation, those of fitness for particular purpose, tenantability, habitability and use Tenant hereby expressly waives any and all claims for damages or for rescission or cancellation of the Agreement because of any representations made by City or by any agent of City Tenant acknowledges that it has had sufficient time to conduct all inspections, reviews and studies of the Premises that Tenant may deem necessary Tenant hereby expressly assumes the risk that adverse physical conditions and the full extent thereof, may not be revealed by Tenant's inspections, reviews and studies of the Premises 5.2 Maintenance of Premises Throughout the term of this Agreement, Tenant shall, at Tenant's sole cost and expense, maintain the Premises, clean, broom swept, fluid spills immediately contained, pick up and properly disposed, waste receptacles clean inside and out with liners, oils, paints, gasoline, lubricant containers, batteries properly stored off the floors, on shelves or in cabinets with approved containment and clean up products readily available, however, City shall maintain the structural components of the hangar, including doors and door mechanisms Tenant hereby waives the provisions of California Civil Code Sections 1941 and 1942 with respect to City's obligations for tenantability of the Premises and Tenant's right to make repairs 5 3 Alterations. Tenant shall not make any alterations to the Premises without City's prior written consent Any alterations made shall remain on and be surrendered at the expiration or sooner termination of the Agreement, provided, however, that City may, at City's sole election, demand the removal from the Premises of all fixtures and improvements or of certain fixtures or improvements or both as specified in the notice provided for below A demand to take effect at the normal expiration of the term shall be effected by notice given at least thirty (30) days before the expiration date A demand to take effect on any other termination of the Agreement shall be effected by notice given in or concurrently with notice of such termination or within sixty (60) days after such termination Tenant shall comply with the notice before the expiration date for normal termination, and within thirty (30) days after the notice for other terminations 5 4 Utilities Except for electrical services which shall be provided by City, Tenant shall be responsible for the payment of all costs for utility services to the Premises City shall not be liable for the failure to provide electrical services if it is prohibited from doing so by events or actions beyond its control 6 PROHIBITION AGAINST ASSIGNMENT AND SUBLETING Tenant shall not assign or transfer, whether voluntarily, involuntarily or by operation of law, its interest in this Agreement or any part hereof No such assignment or transfer shall be valid or binding An attempted assignment or transfer shall be grounds for City's termination of this Agreement As used in this Section 6, the term "assignment" shall include a "more than 25% change in ownership of Tenant " A "more than 25% change in ownership of Tenant" shall mean, if Tenant is a corporation, the transfer of more than 25% of the voting stock of Tenant, or if Tenant is a general partnership, the transfer of the right to share in more than 25% of the profits of such partnership, or, if Tenant is a hunted partnership a transfer of more than 25% of the voting rights of the general partner thereof to individuals or entities which were not theretofore general partners of Tenant In addition, the parking of aircraft not owned or under exclusively lease by Tenant in the Premises shall constitute a sublease for purpose of this Article Jack Vin B]arcom Hangar Lease 4 comments CBS 3232020 5 7 INDEMNITY 7.1 Indemnity Tenant shall indemnify, hold harmless and defend City, its elected officials, officers and employees, from and against any and all actions, claims, damages, disabilities or expenses including, without limitation, attorneys' fees (including fees for use of in-house counsel by a Party), witness costs and court costs that may be asserted by any person or entity, including Tenant, arising out of or in connection with any of the following circumstances 7 1 1 Use of Premises Use of the Premises or Airport in any manner by Tenant, its agents, employees, invitees, subtenants, licenses and contractors, and the agents, employees, patrons, contractors and invitees of Tenants and subtenants, including any use of the Premises or the Airport not allowed under this Agreement 7 1 2 Breach by Tenant Any breach by Tenant of the terms, covenants or conditions herein contained 7.1.3 Other Activities Any other activities of Tenant, its agents, employees and subtenants whether or not there is concurrent negligence on the part of City, but excluding liability due to the sole active negligence or sole willful misconduct of City This indemnification obhgation is not limited in any way by any limitation on the amount or type of damages or compensation payable by or for Tenant or its agents under workers' compensation acts, disability benefit acts or other employee benefit acts 8 TERMINATION AND EXPIRATION. 8 1 Termination for Tenant's Default. If Tenant fails to pay rent or any other sums to be paid by Tenant hereunder, Tenant shall have thirty (30) days after written notice is given Tenant to cure the default If any default by Tenant shall continue uncured following notice of default as required by this Agreement, City shall have the nght to immediately terminate this Agreement in addition to all other rights and remedies provided by law or equity to which City may resort cumulatively or in the alternative 8 2 Tenant's Duty to Surrender At the expiration or earlier termination of the term of The Agreement, Tenant shall surrender to City in as good condition and repair as of the Effective Date, the possession of the Premises If Tenant fails to surrender the Premises at the expiration or sooner termination of this Agreement, Tenant shall defend and indemnify City from all liability and expense resulting from the delay or failure to surrender, including, without limitation, claims made by any succeeding tenant or Tenant or resulting from Tenant's failure to surrender 8 3 Holding Over If Tenant shall continue to occupy or possess the Premises after the termination of this Agreement without the consent of City, then unless City and Tenant have otherwise agreed in writing, Tenant shall be a tenant on a month-to-month basis All the terms, provision and conditions of this Agreement shall apply to this month-to-month tenancy except those terms, provisions and conditions pertaining to the term, and except that the monthly rent shall be immediately adjusted upward upon the expiration or termination of this Agreement to equal three hundred percent (300%) of the monthly rent for the Premises in effect under this Agreement during the month which includes the day immediately prior to the date of the expiration or termination of this Agreement This month- to-month tenancy may be terminated by City or Tenant upon thirty (30) days' prior notice to the non - terminating Party In the event Tenant fails to surrender the Premises upon such termination or Jack Van Blarcom hangar Lease 4 comments CBS 3232020 6 expiration, Tenant shall defend, indemnify and hold City harmless against all loss, liability, cost or expense resulting from or ansing out of Tenant's failure to surrender the Premises, including, without limitation, any amounts required to be paid to any lessee or prospective lessee who was to have occupied the Premises after said termination or expiration and any related attorneys' fees and brokerage commissions Notwithstanding the foregoing, no termination of this Agreement shall release Tenant from any liability or obligation hereunder, whether of indemnity or otherwise, resulting from any acts, omissions or events happening pnor to the date of termination, or date of surrender if it be later 9 NOTICES Any notice required or permitted to be given under this Agreement shall be in wntmg Delivery of such wntten notice shall be conclusively taken and sufficiently given after deposit m the United States Mail, addressed as follows City Tenant City of Redlands City Clerk's Office 35 Cajon Street, Suite 222 (Physical Address) P 0 Box 3005 (Mailing Address) 909-798-7531 jdonaldson@cityofredlands org John C Van Blarcom 2883 Overland Ct Highland, CA 92346 909-561-5953 Vanblarc@pacbell.net Any Party may at any time change its address for notice by giving written notice of such change to the other Party in the manner provided in this paragraph 10. INSURANCE Upon the Effective Date of this Agreement, Tenant shall provide City with a Certificate of Insurance that evidences $1 Million Dollars Combmed Single Limit coverage and recognizes the City as an Additional Insured on the policy, specific to the aircraft stored within the Premises In the event Tenant replaces such aircraft with a replacement aircraft during the term of this Agreement, Tenant shall provide City with a revised Certificate of Insurance for such replacement aircraft within ten (10) days of the same If any endorsements or policy forms are cited on the Certificate of Insurance, a copy of those cited documents must be included as part of the submission A new Certificate of Insurance shall be issued to the City upon either renewal or replacement of the coverage by either the Tenant or their Broker acting as their Agent The City maintains the right to modify these insurance requirements as approved by City Council throughout the duration of this agreement, by providing Tenant notice within thirty (30) days of such change, or upon renewal of the terms of the lease I 1 SECURITY REQUIREMENTS. Lessee shall take any and all measures to ensure security on the Lease Premises in compliance with FAA regulations, Transportation Security Admunstration regulations, and Airport Rules and Regulations, if any 12 MISCELLANEOUS PROVISIONS 12.1 Joint and Several Obligations If Tenant consists of more than one person, the obligation of all such persons is joint and several Jack Van Blarcom Hangar Lease 4 comments CBS 3232020 7 12 2 Captions The captions of this Agreement are for convenience and case of reference only and do not define, limit, augment or descnbe the scope, content or intent of this Agreement 12 3 Successors Subject to the provisions of this Agreement on assignment and subletting, each and all of the covenants and conditions of this Agreement shall be binding on and shall inure to the benefit of the heirs, successors, executors, administrators, assigns and personal representatives of the respective Parties 12 4 Broker's Commissions. Expenses. Tenant and City mutually covenant that no brokers have been or will be used with respect to this Agreement In the event any broker or finder perfects a claim for a commission or finder's fee based upon any such contract, dealings or communications, the Party through whom the broker or finder makes a successful claim shall be responsible for said commission or fee and all costs and any expenses (including reasonable attorneys' fees) incurred by the other Party in defending against the same 12.5 Applicable Law and Forum This Agreement shall be construed and interpreted according to California law and any action to enforce the terms of this Agreement or for the breach thereof shall be brought and tried in the County of San Bernardino 12 6 Covenants and Conditions. All provisions of this Agreement whether covenants or conditions, on the part of Tenant shall be deemed to be both covenants and conditions and such covenants shall survive termination 12.7 Time of Essence. Time is and shall be of the essence of this Agreement and of each and every provision contained in this Agreement 12 8 No Discrimination. Tenant shall comply with all applicable federal, state and local laws, rules and regulations relating to non-discrimination in employment and services because of race, color, ancestry, national origin, religion, sex, mantal status, age, medical condition and handicap 12 9 No Third Party Beneficiaries Nothing contained in this Agreement shall be construed to create and the parties do not intend to create any rights in third parties 12.10 Construction of Lease Severability To the extent allowed by law, the terms, covenants, conditions, provisions and Leases in this Agreement shall be construed and given effect in a manner that avoids any violation of statute, regulation or law City and Tenant covenant and agree that in the event any term, covenant, condition, provision or Lease in this Agreement is held to be invalid or void by court of competent jurisdiction, the invalidity of any such term, covenant condition, provision or Lease shall in no way affect any other term covenant, condition provision or Lease in this Agreement 12 11 Relationship. The Parties intend by this Agreement to establish the relationship of City and Tenant only, and do not intend to create a partnership, joint venture, point enterprise, or any business relationship other than that of City and Tenant 12 12 Force Majeure Neither the City nor Tenant shall be deemed in violation of this Agreement if it is prevented from performing any of the obligations hereunder by reason of embargoes, shortages of material, acts of God, acts of the public enemy, acts of superior governmental authority, weather conditions, floods, riots, rebellions, sabotage, or any other circumstances for which it is not Jack Van Blare= Hangar Lease 4 comments CBS 3232020 8 responsible or which are not within its control, and the time for performance automatically shall be extended by the penod the party is prevented from performuzg its obligations hereunder During time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military use, and if such lease is executed, the provisions of this Agreement insofar as they are inconsistent with the provisions of the lease to the United States Government, shall be suspended IN WITNESS WHEREOF, the parties to this Agreement have duly executed this Agreement on the date set forth above CITY OF REDLANDS is : oa man, Facilities & Community Services Director ATTEST e Donaldson, City Clerk TENANT Jack Van Blarcom Hangar Lease 4 comments CBS 3232020 9 Exhibit "A" Jack Van Blarcom Hangar Lease 4 comments CBS 3232020 10 ___-- A 1V i ■AO ®'"- y _ Hangar i 40,28' 1!:2,4i9.90sgff - • - - "- le l - Hangar 18 S89,OOsgft 1647 ' Ha19 • sgtt e .. 3627 .1,. - - . r -- . 9 r r �, Hangar 4 1625 Sessums Dr .- ,o 3617 Hangar 25 2.214.0Dsgft m 36.27' 78.19' Hangar ,•S 1,196.00sgft RI. 18.19' o - ^ Pilot's Lounge 18,19' 16.20, N 18.20' 3 o• 8 v 1''''' o, Hangar 20 a 1.738.00sgft 3625' m Hangar 21 1,777.00sgft ::e 36.27' v - ti Hangar 26 1,736.00sgf1 36.26 Hangar 2 v1,930.00%01 40.28' n Hangarl3 1,186.00sgH Hangar 1,186.0050f sr 18,19' o 18.20'o i. r- H 18.20' $ ci 14 .7.i. ..- 8,19'- Hangar 27 - 1,738.40sgH v 3627' oa Hangar 1.926,0asq!I 4028 : Hangar 1,188.00agft n 2 Hangar 1,188.00sgftF4 k71 18.19' o 18.20' ^ 18.20' g 0 15 .m ,'s 618.19' ko ! Hangar 1.929.00690 40.28' n Hangar 1,169.006gft w Hangar 22 m 1.737.06sg1t - 36.27' pj v Hangar 28 1,739.00sgft `n a 38,2T co o Hangar 1,188.00sgft ro ao 18.19' •o 1820' 10 60 n 78 20' iiS 16 i- a 6 8,19' 12,7 Hangar ry 1,189,005gft •18.20' v Hangar 5 1,929.00sgfe 40.28'35.27' Hangar 23 m1,737.00sgtt .1. m sr Hangar 26 1,73.6.00sOm r y 3627' o ,1 ngar 1,188.00xgtt + 1819' c '- 118.00.q c F. 18 20' - t .,'"a'' 17 v°4 m a o m 1879' V.5 25 F.,I m Hangar r 1,189.00sgrt 9I ' 49al -%,1 ACrrylIKTWnars" a Hangar 6 1,92d,a0sgR 40,2816 Hangar 24 s 1.733.00sg0 a 39,27' n Hangar Han ]0 1,732.00sgk v 36.27' w o Hangar e 1r187.00sgft Y 79' The- map w du w M +v facer nm Geaweph IM that or Redlands M nor Path•:ponsiau�Iymrino lrtamalnn contained an d map. a antic In nano., Mere.ate utai to . tr, rate MI snvdo may el n may no bo the muni current, 18.20' l2 _. rV 1820' ro o a r ^ ti 016.39' January 21 2020 '".t�",,,-y-,`,"'-s..+'k wn1674_16258assums_Hangar4.nud Name of Applicant Phoenix Service Corp Policy No NAB6028246 Date of Notice 10/22/2019 Insurance Company Endurance American Insurance Co POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE You are hereby notified that under the Terrorism Risk Insurance Act, as reauthorized and amended, that you have a right to purchase insurance coverage 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 accordance with the provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism, to be a violent act or an act that is dangerous to human life, property, or infrastructure, to have resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission and 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 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 UNDER A FORMULA ESTABLISHED BY FEDERAL LAW HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS UNDER THIS FORMULA, THE UNITED STATES GOVERNMENT GENERALLY REIMBURSES 85% IN 2015 AND DECREASES ITS REIMBURSEMENT PERCENTAGE 1% EACH CALENDAR YEAR TO A TOTAL OF 80% IN 2020 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 COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS REAUTHORIZED AND 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 Acceptance or Rejection of Terrorism Insurance Coverage ❑ I hereby elect to purchase Terrorism coverage for certified acts of terrorism for a prospective premium of Not Covered Kg I hereby decline to purchase terrorism coverage for certified acts of terrorism I understand that I will have no coverage for losses resulting from -cts of terrorism Policyholder Signatur es ! Date l,/sez/,--'4/., TRIA TRIN 0115 AIRCRAFT INSURANCE POLICY DECLARATIONS POLICY NUMBER NAB6028246 RENEWAL OF NAB6020204 ISSUED BY W BROWN & ASSOCIATES INSURANCE SERVICES Proud to Have You As a Customer Since 2013 ITEM 1 NAMED INSURED Phoenix Service Corp ADDRESS 2711 Centerville Rd Ste 400 Wilmington DE 19808 ITEM 2 POLICY PERIOD FROM October 22, 2019 TO October 22, 2020 12 01 AM Standard Time at the address in ITEM 1 Endurance Endurance American insurance Co A Stock Company Wilmington DE ITEM 3 The insurance afforded is only with respect to such of the following coverages as are indicated by specific premium charge or charges The limit of the Company's liability against each such coverage shall be as stated herein; subject to all of the terms of this Policy having reference thereto This Policy is completed by Aircraft Hull and Liability Form NAC 02 ITEM 4 LIABILITY COVERAGES LIMIT OF LIABILITY LIABILITY EACH PERSON EACH OCCURRENCE PREMIUM A Bodily Injury Excluding Passengers B Property Damage XXXX C Passenger Liability ID Single Limit Bodily Injury & Property Damage Including Passenger Liability XXXX Aircraft Liability & Medical Expense $1,815 00 Passenger Liability Limited To E Medical Expense Including Crew TOTAL LIABILITY PREMIUM $1,815.00 ITEM 5 Description of Aircraft and Physical Damage Coverage Hereunder PHYSICAL F.A.A SEATS INSURED DAMAGE YEAR MAKE MODEL CERT. NO. CREW/PASS VALUE PREMIUM Please refer to attached Schedule of Aircraft $2,287.00 DEDUCTIBLES DEDUCTIBLES NOT IN MOTION IN MOTION PHYSICAL DAMAGE TOTAL PHYSICAL DAMAGE PREMIUM $2,287 00 TOTAL PREMIUM $4,102.00 ITEM 6 PILOTS When in flight the aircraft will be piloted only by the following pilots, provided each has a valid pilots certificate including a current and valid medical certificate appropriate for the flight and aircraft insured The term Medical Certificate is defined as any valid First -Class Second Class, Third -Class, or BasicMed compliance All medical certificates must be appropriate for the intended flight and in compliance with the FAA's Codes of Federal Regulations Pilots operating under BasicMed must be able to provide documentation that demonstrates complete compliance As Endorsed ITEM 7 The aircraft will be used for Pleasure and Business ITEM 8 LOSS PAYABLE Endorsement in favor of Not Applicable ITEM 9 The Named Insured is and shall remain the sole and unconditional owner of any aircraft declared hereunder and the aircraft is not subject to any encumbrance other than as indicated in Item 8 PRODUCER. Travers & Associates Aviation Insurance Agency, LLC P O Box 220519 St Louis, MO 63122 NAC 01 1215 Endorsements forming a part of this policy on effective date in Item 2 are shown on the attached schedule incorporated as a part hereof DATE ISSUED October 22, 2019 APPROVED BY W Brown & Associates POLICY NUMBER NAB6028246 SCHEDULE OF FORMS AND ENDORSEMENTS NAMED INSURED EFFECTIVE DATE Phoenix Service Corp October 22, 2019 12 01 am Standard Time PN 0001 0712 NAC -70-1215 NAX 01-1215 NAX 06 1215 NAC -81 1215 NAC -21-1215 IL 1201 0115 IL 1313 0115 NAX 90 DE 1215 NAC -01-1215 Page 2 of 3 POLICY NO NAB6028246 ATTACHED TO DECLARATION PAGE (NAC -01-1215) SCHEDULE OF AIRCRAFT DESCRIPTION OF AIRCRAFT No FAA Cert # Serial # Year/Make/Model Seats (Crew/Pass) Insured Value 1 N125TC TJ -3 1975 Beechcraft 58 Baron 1/5 $140,000 00 PHYSICAL DAMAGE COVERAGE No Deductibles Physical Damage Coverage Premium Not In Motion In Motion 1 $2,500 $2,500 F All Risk Basis $2,287 00 TOTAL PHYSICAL DAMAGE PREMIUM $2,287.00 AIRCRAFT LIABILITY COVERAGES No Single Limit Bodily Injury & Property Damage Passenger Liability Passenger Liability Limited To Premium Each Person Each Occurrence 1 $1,000,000 Included 100,000 600,000 $1,815 00 TOTAL AIRCRAFT LIABILITY PREMIUM $1,815 00 MEDICAL EXPENSES No Including Crew Each Person Each Occurrence Premium 1 Yes $5,000 $30,000 Included TOTAL MEDICAL LIABILITY PREMIUM $0 00 NAC -01-1215 Page 3 of 3 WARNING If you have an accident or occurrence within the country of Mexico, you may be jailed and your aircraft may be impounded unless you have aircraft liability coverage that complies with all local regulations This may include purchasing coverage from an insurer which is licensed in Mexico Please be aware that neither W Brown & Associates nor the Company are licensed in Mexico We strongly advise that you confirm with Mexican authorities whether this policy will be sufficient to meet your insurance obligations If not, you should obtain additional coverage as required prior to departing the United States NOTICE TO POLICYHOLDERS U.S TREASURY DEPARTMENT'S OFFICE OF FOREIGN ASSETS CONTROL (OFAC) No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy You should read your policy and review your Declarations page for complete information on the coverages you are provided This Notice provides information concerning possible impact on your insurance coverage due to directives issued by OFAC Please read this Notice carefully The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential declarations of "national emergency" OFAC has identified and listed numerous • Foreign agents, • Front organizations, • Terrorists, • Terrorist organizations, and • Narcotics traffickers, as "Specially Designated Nationals and Blocked Persons" This list can be located on the United States Treasury's website — http //www treas.gov/ofac In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity claiming the benefits of this insurance has violated U S sanctions law or is a Specially Designated National and Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all provisions of this insurance are immediately subject to OFAC When an insurance policy is considered to be such a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC Other limitations on the premiums and payments also apply PN 0001 0712 FRAUD NOTICE Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison Arkansas Colorado STATE -SPECIFIC PROVISIONS Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison R is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company Penalties may include imprisonment, fines, denial of insurance, and civil damages Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable for insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory Agencies District of WARNING It is a crime to provide false or misleading information to an insurer Columbia for the purpose of defrauding the insurer or any other person Penalties include imprisonment and/or fines In addition, an insurer may deny insurance benefits if false information materially related to a claim was provided by the applicant Florida Kansas Kentucky Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false incomplete, or misleading information is guilty of a felony of the third degree A "fraudulent insurance act" means an act committed by any person who, knowingly and with intent to defraud, presents, causes to be presented or prepares with knowledge or belief that it will be presented to or by an insurer, purported insurer, broker or any agent thereof, any written, electronic, electronic impulse, facsimile, magnetic, oral, or telephonic communication or statement as part of, or in support of, an application for the issuance of, or the rating of an insurance policy for personal or commercial insurance, or a claim for payment or other benefit pursuant to an Insurance policy for commercial or personal insurance which such person knows to contain materially false information concerning any fact material thereto, or conceals, for the purpose of misleading, information concerning any fact material thereto Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any materially false information or conceals, for the purpose of misleading information concerning any fact material thereto commits a fraudulent insurance act, which is a crime Louisiana Any person who knowingly presents a false or fraudulent claim for payment of a PNAP 001 0915 Page 1 of 4 Maine Maryland loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company Penalties may include imprisonment, fines, or dental of insurance benefits Any person who knowingly or willfully presents a faise or fraudulent claim for payment of a loss or benefit or who knowingly or willfully presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison New Jersey Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties New Mexico Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents faise information in an application for insurance is guilty of a crime and may be subject to civil fines and criminal penalties New York General All applications for commercial insurance other than automobile insurance Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the stated value of the claim for each such violation All applications for automobile insurance and all claim forms Any person who knowingly makes or knowingly assists, abets, solicits or conspires with another to make a false report of the theft, destruction, damage or conversion of any motor vehicle to a law enforcement agency, the department of motor vehicles or an insurance company, commits a fraudulent insurance act which is a crime, and shall also be subject to a civil penalty not to exceed five thousand dollars and the value of the subject motor vehicle or stated claim for each violation Fire Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime The proposed insured affirms that the foregoing information is true and agrees that these applications shall constitute a part of any policy issued whether attached or not and that any willful concealment or misrepresentation of a material fact or circumstances shall be grounds to rescind the insurance policy Ohio Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud Oklahoma WARNING Any person who knowingly, and with intent to injure, defraud or PNAP O01 0915 Page 2 of 4 Pennsylvania Puerto Rico Rhode island Tennessee Utah Virginia Washington PNAP 001 0915 deceive any insurer, makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading information is guilty of a felony All Commercial Insurance, Except As Provided for Automobile insurance Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties Automobile Insurance Any person who knowingly and with intent to injure or defraud any insurer files an application or claim containing any false, incomplete or misleading information shall, upon conviction, be subject to imprisonment for up to seven years and the payment of a fine of up to $15 000 Any person who knowingly and with the intention of defrauding presents false information in an insurance application, or presents, helps, or causes the presentation of a fraudulent claim for the payment of a loss or any other benefit, or presents more than one claim for the same damage or loss, shall incur a felony and, upon conviction, shall be sanctioned for each violation by a fine of not less than five thousand dollars ($5,000) and not more than ten thousand dollars ($10,000), or a fixed term of imprisonment for three (3) years, or both penalties Should aggravating circumstances [be] present, the penalty thus established may be increased to a maximum of five (5) years, if extenuating circumstances are present it may be reduced to a minimum of two (2) years Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison All Commercial Insurance, Except As Provided for Workers' Compensation It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company Penalties include imprisonment, fines and denial of insurance benefits Workers' Compensation It is a crime to knowingly provide false, incomplete or misleading information to any party to a workers' compensation transaction for the purpose of committing fraud Penalties include imprisonment, fines and denial of insurance benefits Workers' Compensation Any person who knowingly presents false or fraudulent underwriting information, files or causes to be filed a false or fraudulent claim for disability compensation or medical benefits, or submits a false or fraudulent report or billing for health care fees or other professional services is guilty of a crime and may be subject to fines and confinement in state prison It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company Penalties include imprisonment, fines and denial of insurance benefits It is a crime to knowingly provide false, incomplete or misleading information to Page 3 of 4 West Virginia All Other States an insurance company for the purpose of defrauding the company Penalties include imprisonment, fines and denial of insurance benefits Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison Any person who knowingly and willfully presents false information in an application for insurance may be guilty of insurance fraud and subject to fines and confinement in prison (In Oregon, the aforementioned actions may constitute a fraudulent insurance act which may be a crime and may subject the person to penalties) PNAP 001 0915 Page 4 of 4 ENDURANCE AMERICAN INSURANCE CO. IN WITNESS WHEREOF, the Insurer has caused this Policy to be signed by its President and Senior Vice President and countersigned where required by law on the Declarations page by its duly authorized representative vi a 0 Senior Vice President President IL 1007 0114 SOMPO INTERNATIONAL Privacy Notice for Insurance Applicants and Policyholders At Sompo International we are committed to protecting your personal information and respecting your data protection and privacy rights you have under applicable law and regulations When you submit any information to us for the purpose of requesting information from us about or obtaining, our products or services or otherwise, including any personal information, we will use the information in our insurance business to conduct our business and perform our legal obligations, including (i) verifying your identity (ii) preventing, investigating or reporting fraud or potential fraud, money laundering, terrorism, misrepresentation, security incidents, sanctions violations or any crime, all in accordance with applicable law and regulations, (iii) assessing, establishing and managing claims and arranging or entering into any appropriate settlements (iv) managing, reporting and auditing our business operations, (v) recovering debt, (vi) developing improving and protecting our products, services, website, systems and relationships with you, (vii) research, risk management and statistical analyses, (viii) establishing, exercising or defending legal claims, and (ix) meeting regulatory and compliance requirements With your permission, we may also use your contact details (including email address) to send you information about our products and services or other products and services provided by us or one of our group companies We may share your information for the purposes outlined above with (i) our group companies, (ii) brokers, other insurers and underwriters, (iii) healthcare professionals, (iv) law enforcement authorities, (v) other government authorities, (vi) fraud prevention agencies, and (vu) third parties involved in any aspect of claims management including surveyors, loss adjusters, claims agents solicitors and private investigators, (vitt) parties that may have a financial interest in the insurance policy or claim, PN 0017 0618 SOMPO INTERNATIONAL (ix) other service providers that may process your personal information on our behalf (for example, IT service providers that host or support our business and may have data that includes your personal information), and (x) otherwise with your consent or in accordance with applicable law and regulations If you have provided information about another person, in doing so you confirm that you have such person's consent to provide the personal information to us, that you have told such person that you have provided the information to us, and how we will use the personal information as described in this notice To the extent you have provided your consent, and your consent provides the basis for our use of the information you may withdraw your consent at any time by contacting us as described below More details about how we use your personal information may be found on our website at www sompo- intl com The website also provides additional information about your data protection rights, how you may access and update your personal information and other choices you have about how we use your personal information (including how to object to processing or withdrawing your consent at any time) If you have any questions regarding this notice, please contact us at Attn Chief Compliance Officer Sompo International 4 Manhattanville Rd Purchase, NY 10577 prnvacy[c�sompo-inti com PN 0017 0618 PLEASURE AND BUSINESS AIRCRAFT INSURANCE POLICY Wherever used in this Policy, the words "you" and "your" refer to the person or organization appearing as Named Insured in the Declarations "We", "our", "Company" and "us" refer to the insurance company as identified in the Declarations Page The Company, in consideration of payment of the premium and in reliance upon the statements in the Declarations and subject to the Limits of Liability, Exclusions, Conditions and all other terms of the Policy, agrees with the Named Insured identified in the Declarations Page herein as follows INSURING AGREEMENTS 1 LIABILITY COVERAGES Coverage A - Bodily Injury Excluding Passengers - (including any and all Related Claims) - To pay on your behalf all sums which you become legally obligated to pay as damages because of Bodily Injury sustained by any person excluding any Passenger caused by an Occurrence during the Policy Period and arising out of the ownership, maintenance or use of an Aircraft Coverage B - Property Damage Liability - To pay on your behalf all sums which you become legally obligated to pay as damages because of Property Damage caused by an Occurrence during the Policy Period and arising out of the ownership, maintenance or use of an Aircraft Coverage C - Passenger Bodily Injury Liability - (including any and all Related Claims) - To pay on your behalf all sums which you become legally obligated to pay as damages because of Bodily injury sustained by any Passenger caused by an Occurrence during the Policy Period and arising out of the ownership, maintenance or use of an Aircraft Coverage D - Single Limit Bodily Injury and Property Damage Liability (including any and all Related Claims) to pay on your behalf all sums which you become legally obligated to pay as damages because of Bodily Injury sustained by any person (excluding any Passenger unless the words "Including Passengers" appear in Item 4 of the Declarations) and Property Damage caused by an Occurrence during the Policy Period and arising out of the ownership, maintenance or use of an Aircraft 1 Airport Premises Liability - With respect to Coverages A, B, C and D we will also pay those sums that you become legally obligated to pay as damages because of Bodily Injury or Property Damage caused by an Occurrence during the Policy Period arising from the use of Airport Premises including hangars and Mobile Equipment which you use in connection with an Aircraft insured hereunder This extension of coverage is subject to the Limits of Liability shown in Item 4 of the Declarations and does not increase the maximum amount we will pay 2 Liability For Property Damage To Hangars And Their Contents - With respect to Coverages A, B, C and D we will also pay those sums that you become legally obligated to pay as damages because of Property Damage to any hangar not owned, rented or leased by you This extension of coverage also applies to the contents of such hangars other than aircraft Our Limit of Liability for this extension of coverage is $250,000 per Occurrence and does not increase the Limits of Liability as shown in Item 4 of the Policy Declarations 3 Personal Injury - With respect to such coverage as is provided by Coverages A, C and D in Section I of this Policy, we will also pay those sums that you become legally obligated to pay as damages because of Personal Injury to which this insurance applies provided that such Personal Injury results from the use of an Aircraft covered by this Policy We may settle any claim or suit to which this extension applies subject to the lesser amount of the Limits of Liability shown in Item 4 of the Declarations or $1,000,000 per Occurrence and aggregate and does not increase the maximum amount we will pay 4 Fire Legal Liability - With respect to Coverages B and D Section 1 of the Policy, it is agreed that Exclusion 12 does not apply to Property Damage to Premises you lease or which you temporarily occupy with the permission of the owner provided such Property Damage is caused by a fire for which you are legally liable Our Limit of Liability for this extension of coverage is NAC -02 -PBI -1215 Page 1 of 16 $50 000 each Occurrence Coverage such as is afforded hereunder is included in and does not increase the Limits of Liability as shown in Item 4 of the Policy Declarations 5 Non -Owned Aircraft Liability It is agreed that, with respect to Coverages A, B and D Section 1 of the Policy, coverage will apply to any aircraft you use but which is not declared in Item 5 of the Declarations always provided that you have no interest in the aircraft as owner in whole or in part and exercise no part in the servicing or maintenance of the aircraft Our liability for losses under this coverage with respect to non -owned aircraft is subject to the Limits of Liability shown in Item 4 of the Declarations and does not increase the maximum amount we will pay No coverage hereunder applies a) To liability arising out of any product you manufacture, sell, handle or distribute b) To any aircraft having seating capacity exceeding that of the Aircraft covered hereunder with the largest number of seats c) To liability for loss of or damage to the aircraft or any consequential loss arising therefrom d) To any rotorwing aircraft or amphibious aircraft Non -Owned Aircraft Liability coverage hereunder will be excess over any other valid and collectible Insurance available to you 6 Limited Aircraft Products Liability Coverage - It is agreed that we will pay those sums that you become legally obligated to pay as damages because of Bodily Injury or Property Damage to which this insurance applies arising from the sale of an Aircraft covered hereunder We also agree to pay such claims for damages arising from the sale of aircraft equipment or aircraft parts intended for use with that Aircraft Coverage under this extension applies only to claims arising from an Occurrence that takes place during the Policy Period The Limits of Liability under this extension are included within the Limits of Liability applicable to Coverages A B and D and are riot in addition thereto This coverage extension does not apply to any Insured who is in the business of selling aircraft, aircraft parts or aircraft equipment 7 Passengers' Personal Effects and Baggage - Notwithstanding anything to the contrary in Exclusion 13 (b), we agree to pay damages for which you are legally liable arising from the loss of or damage to the personal effects or Baggage of any Passenger on any Aircraft shown in Item 5 of the Declarations subject to a Limit of Liability not to exceed $5,000 each Passenger 8 Mechanics Tools - We agree to pay for Physical Damage to or loss of tools and other apparatus used to repair or maintain the Aircraft covered hereunder and for which you are legally liable Our liability for losses covered by this paragraph will in no event exceed $2 500 in respect to any one Occurrence 9 Host Liquor Liability - It is agreed that such insurance as is provided by Coverages A B and D will be extended to include Bodily injury and Property Damage for which you are legally liable by reason of serving alcoholic beverages on board an Aircraft shown in Item 5 of the Declarations This coverage extension does not apply if you are in the business of manufacturing, selling, distributing, serving or furnishing alcoholic beverages The coverage extension afforded hereunder is included in and does not increase the Limits of Liability as shown in Item 4 of the Policy Declarations 10 Date Change Recognition — We agree to pay for damages from an Aircraft accident, an Occurrence, or other event or circumstance caused by the failure of any equipment to function safely or correctly following any real or simulated change of year, date or time, except a) loss not otherwise covered under this Policy, or b) loss which arises out of coverage on a first party basis for grounding, loss -of -use, business interruption, consequential loss or the like It is a condition of this coverage that the Insured have followed appropriate best practice for the purpose of avoiding and minimizing loss, damage or liability arising out of any such failure, but any loss or losses that arise directly or indirectly out of any advice, consultation, design, evaluation, inspections, installation, maintenance, repair, replacement, or supervision provided or NAC-02-PB1-1215 Page 2 of 16 done by the Insured or for Insured to determine, rectify or test for any potential or actual problems that may cause such failure are not covered Any loss or losses covered under this section which arise from more than one Occurrence or from the aforesaid failure(s) which is or are common to more than one item of equipment will not be one Occurrence under this Policy, except a) to the extent of covered Physical Damage to tangible property or Bodily injury losses at any one location arising out of one Occurrence, or b) an Aircraft accident caused by such failure of any one item of equipment Coverage such as is afforded hereunder is included in and does not increase the Limits of Liability as shown in Item 4 of the Policy Declarations No Aggregation - A collision between two or more Aircraft shall be deemed one Aircraft accident and losses arising from more than one Aircraft accident cannot be aggregated under this coverage section 11 Guest Voluntary Settlement (GVS) - Coverage C and Coverage D, as shown in Section I of the Policy, are agreed to include a Guest Voluntary Settlement provision by which, regardless of legal liability we will offer to pay at your request the benefits hereinafter set forth with respect to Bodily injury or death suffered by a Guest, resulting directly and independently of all other causes from an Occurrence while the said Guest is in or boarding the Aircraft for the purpose of riding therein, or alighting therefrom following a flight or attempted flight therein, provided that at the time of any Occurrence causing such Bodily Injury or death insurance is effective under Coverage C - Passenger Bodily Injury Liability of the Policy, or Coverage D - Single Limit Bodily Injury and Property Damage Liability, if Passengers are included under Coverage D GVS Benefits Payable - If within 90 days from the date of accident, such Bodily Injury suffered by the Guest results in loss of a) Life, or any two extremities (hands or feet) by severance at or above the wrist or ankle, or the entire sight of both eyes if irrecoverably lost, or the entire sight of one eye if irrecoverably lost and one extremity (hand or foot) by severance at or above the wrist or ankle, we will offer the amount you request but not exceeding $100,000 for the loss suffered b) Any one extremity (hand or foot) by severance at or above the wrist or ankle, or the entire sight of one eye if irrecoverably lost, we will offer the amount you request but not exceeding one-half the amount specified in paragraph (a) hereof c) In no event will we be obligated to offer an amount hereunder in excess of the amount specified in paragraph (a) d) The amounts which we will offer for such Bodily Injury or death suffered by Guests as a result of any one Occurrence or series of Occurrences arising from one and the same cause will not exceed the aggregate sum of $500,000 or $100,000 per Guest, whichever is less If this sum is less than the total of the amounts to be offered each Guest in accordance with the foregoing provisions, then the amounts payable will be reduced in the proportion that the aggregate sum bears to the total of said amounts e) Notwithstanding the definition of Guest provided herein, it is agreed that the coverage provided hereunder will not apply to pilot(s) and/or crew Conditions - With respect to the foregoing Guest Voluntary Settlement extension, the following provisions apply a) It is a condition of the payment of these benefits that, upon acceptance of such payment the Guest and any person having a loss of service claim and any person having a claim by way of subrogation to the rights of such Guest or other person, and any person having the right to recover from the Insured expenses incurred because of such injury or death and, in the event of the death of the Guest, the person or persons having a cause of action for the death, will execute a full legal release of all claims against the Insured (except that no person giving such release will be required to release the employer of the Guest from any claim for Workmen's Compensation Benefits or any claim for injury or death arising out of NAC-02-PB1-1215 Page 3 of 16 and In the course of such Guest's employment by such employer, but this exception will not relieve such person of the necessity of giving a full legal release of all claims against all Insureds other than such employer) and if the injured Guest or any person claiming by, through or under such Guest refuses to accept the benefits offered by these provisions within thirty (30) days following such offer and to execute the necessary release, the Company will no longer be bound to pay such benefits, b) The commencement of any claim, suit or demand upon you for damages on account of such Bodily Injury or death will constitute a refusal to accept the benefits offered hereunder and our obligations as expressed in the Policy, exclusive of any of the GVS provisions, will thereupon be available to you, c) Benefits by the terms of this extension are a part of, and not in addition to, the Limit of Liability specified for Coverage C - Passenger Bodily Injury Liability or specified for Coverage D - Single Limit Bodily Injury and Property Damage Liability, if Passengers are included under Coverage D, d) The Guest, or someone on his behalf, will at the request of the Company furnish reasonably obtainable information pertaining to the injuries and execute authorization to enable us to obtain medical reports and copies of records The Guest will submit to physical examination by physicians selected by us when and as often as we may reasonably require, e) The Guest Voluntary Settlement provisions hereunder do not apply to Special Insuring Agreement I of the Policy, f) Guest Voluntary Settlement benefits apply only to Aircraft covered hereunder and which are described in Item 5 of the Declarations, and The insurance afforded under this provision does not apply to Bodily Injury or death caused directly or indirectly, in whole or in part, by war, whether declared or not, any act of war or warlike operation 12 Cargo Liability - We agree to pay on your behalf those sums which you will become legally liable to pay (but limited to your legal liability under the applicable tariff document, airway bill of lading or shipping receipt, if any) for direct Physical Damage or loss from external cause to cargo, caused by an Occurrence, and while on -board or being loaded onto or unloaded from Aircraft shown in Item 5 of the Declarations g) Our Limit of Liability for this coverage extension is $50 000 each Occurrence A deductible of $1,000 applies to each loss The Limits of Liability applicable to Cargo Liability are included within the Policy's Limits of Liability applicable to Property Damage Liability and are not in addition thereto Coverage afforded hereunder will be secondary to and excess over any other valid and collectible insurance available to you In addition to the exclusions appearing elsewhere in the Policy applicable to all Liability coverages, our obligations under this section do not apply to any liability for a) loss of use, Toss of market, delay, inherent vice, extremes of temperature or pressure, or deterioration, b) loss, damage or expense caused by or resulting from infidelity or dishonesty of any person in the employment or service of the insured, c) loss in excess of the actual cost of reproducing or replacing destroyed or damaged manuscripts, notes, securities, accounts, bills, deeds, or any other valuable papers, d) property you own, e) Passenger Baggage, f) Toss of or damage to cargo which is considered dangerous or harmful and for which a special permit or waiver from a federal, state, county, or municipal authority is required, or g) loss of cargo that disappears mysteriously NAC-02-PB1-1215 Page 4 of 16 13 Contractual Liability - With respect to such coverage as is provided by Coverages A, B, C and D in Section 1 of this Policy, we will also pay those sums that you become legally obligated to pay as damages because you have assumed those obligations in a written contract or agreement It is a condition of this coverage extension that you send a copy of any contract or agreement, other than an airport contract, to the Aviation Managers within 30 days of your receipt of that contract However your unintentional failure to send copies of contracts or agreements will not operate to void this coverage provided you submit contracts as soon as possible after determining one exists Our liability for losses under this coverage is subject to the Limits of Liability shown in Item 4 of the Declarations and does not increase the maximum amount we will pay The subrogation section as shown in Condition 16 will not apply to any written contract or agreement except any contract or agreement with a person or organization which had been entered into after a loss The coverage extensions described in Items 1 through 13 are included in and do not increase our Limits of Liability as shown in Item 4 of the Declarations 11 MEDICAL EXPENSE COVERAGE Coverage E - Medical Expense - We will pay all reasonable Medical Expense incurred within one year from the date of injury, to or for each Passenger who sustains Bodily Injury caused by an Occurrence during the Policy Period, provided the Aircraft is being used by or with your express permission Coverage is hereby also extended to pay covered losses for rnjunes occurring on any Premises to which this Policy applies provided the injured person is on such Premises with your permission Our Limit of Liability for this coverage extension will not exceed the Medical Expense Coverage limit shown in the Declarations 111 PHYSICAL DAMAGE COVERAGES Coverage F - All Risk Basis - We will pay for any Physical Damage to or loss of the Aircraft, including Disappearance of the Aircraft Coverage G - All Risk Basis Not In Motion - We will pay for any Physical Damage to or loss of the Aircraft sustained while the Aircraft is not In Motion and which rs not the result of fire or explosion following crash or collision while the Aircraft was In Motion It is further agreed that the insurance provided by Coverage F and Coverage G is extended to include the following 1 Spare Parts - Coverage for Physical Damage to or loss of spare parts, including engines, you own or for which you are legally liable, and which are intended for use in the Aircraft insured by this Policy Our liability for losses covered by this paragraph will in no event exceed $100,000 in respect to any one Occurrence subject to a deductible of $2,500 per loss 2 Parts Temporarily Detached - Coverage for Physical Damage to or loss of parts temporarily detached from Aircraft covered hereunder, including engines, you own or for which you are legally liable Our liability for losses covered by this paragraph will in no event exceed $50,000 in respect to any one Occurrence subject to a deductible of $2,500 each loss 3 Fire and Crash Emergency Expenses - The cost of fire and crash emergency expenses including runway foaming or Aircraft foaming for the purpose of minimizing Physical Damage loss or a Bodily Injury loss under this Policy Our Limit of Liability will not exceed $50,000 any one Occurrence 4 Emergency Off -Airport Landing Expenses - In the event the pilot in command is forced to make an emergency off airport landing and no Physical Damage to the Aircraft occurs, Coverage F is hereby amended so that we will pay the expenses of transporting the Aircraft to the nearest suitable airport provided that such expenditures must be agreed to in advance by us and our Limit of Liability will not exceed $50 000 any one Occurrence 5 Search and Rescue - We will pay the actual incurred expenses for Search and Rescue operations performed by you or at your request provided such expenses arise in connection with an Occurrence otherwise covered by this Policy Coverage afforded by this paragraph will not NAC-02-PB1-1215 Page 5 of 16 apply until such time as all governmental authorities and military Search and Rescue operations have been abandoned Our Limit of Liability for Search and Rescue operations will not exceed $50,000 any one Occurrence 6 Non -Owned Aircraft - Physical Damage Legal Liability - It is agreed that such insurance as is afforded by Coverages F and G described in Section 111 of the Policy is extended to apply to Liability imposed by law upon the Insured for damage to or destruction of any aircraft (including resultant loss of use) which is the property of others and which at the time of the loss is in your custody for use by you or for your interests As respects Non -Owned aircraft only, this Policy does not apply to a) Loss of or damage to robes, wearing apparel, personal effects or merchandise of any description, whether the aircraft in which they are contained is stolen or damaged, b) Loss of or damage to any aircraft owned by, or leased under a long term lease to you or your family or if you are a co -partnership, by any member thereof or his or her family or rf you are a corporation by any officer or his or her family c) Loss of or damage to any material you furnish or any work you perform out of which the Occurrence anses, d) Liability you assume under any contract or agreement not identified specifically or by definition under this Policy, e) Any aircraft having seating capacity exceeding that of the Aircraft covered hereunder with the largest number of seats, or f) Any aircraft used for carrying of Passengers or freight for hire or reward Our Limit of Liability for this extension will not exceed the greatest hull value shown in Item 5 of the Declarations for Aircraft covered hereunder A deductible of $2,500 will apply to each loss The coverage extensions described in Items 1 through 6 are included in and do not increase our Limits of Liability as shown in Item 5 of the Declarations IV. DEFENSE, SETTLEMENT AND SUPPLEMENTARY PAYMENTS Coverages A, B, C and D - We will have the right and duty to defend any suit against you seeking damages on account of such Bodily Injury or Property Damage which occurred during the Policy Period, even if any of the allegations of the suit are groundless, false or fraudulent We may make such investigation and settlements of any claim or suit as we deem expedient, but we will not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of our liability has been exhausted by settlements, tendered in a Court of Law, or payment of judgments During such times as we are obligated to defend a claim or claims under the provisions of the preceding paragraph, we will pay with respect to such claims, in addition to the applicable Limits of Liability 1 All expenses we incur, all costs taxed against you in any suit we defend and all interest accruing after judgment upon that portion of the judgment falling within the Limits of Liability before we have paid or tendered or deposited in court that part of the judgment which does not exceed the Limit of Liability thereon, 2 Premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable Limit of Liability of this Policy and the cost of bail bonds required of the Insured because of an Occurrence or violation of civil aviation law or regulation arising out of the use of the Aircraft not to exceed $500 per bad bond but we will have no obligation to apply for or furnish any such bonds, 3 Expenses you incur for first aid to others at the time of an Occurrence, for Bodily Injury to which this Policy applies, 4 All reasonable expenses you incur at our request other than for loss of earnings or for the wages or salaries of your employees V. UNITED STATES NAVY AND AIR FORCE INSURANCE REQUIREMENTS Coverages A, B, C and D - if the Aviation Managers issue a Certificate of Insurance as required by NAC-02-PB1-1215 Page 6 of 16 United States Navy OPNAV Form 3770 or United States Air Force Regulation 55-20 or any replacement of either then the insurance policy provisions required by such regulation will be deemed to be incorporated herein and substituted for any policy provision inconsistent therewith VI POLICY PERIOD, TERRITORY All Coverages - This Policy applies only to Bodily Injury or Property Damage which occurs, and to Physical Damage losses to the Aircraft which are sustained during the Policy Period, while the Aircraft is within the United States of America, including its Territories and Possessions, and the District of Columbia, Canada, Mexico, the Bahamas and the Caribbean, excluding Cuba and Haiti, or while in route between parts thereof VII TWO OR MORE AIRCRAFT All Coverages - When two or more Aircraft are Insured under this Policy the terms of this Policy will apply separately to each VIII AIRCRAFT FLIGHT INCIDENTAL TO MAINTENANCE While the Aircraft is in the care, custody or control of a Federal Aviation Administration approved repair station or aircraft repair facility for the purpose of maintenance or repair, Item 6, Pilots, of the Declarations will not apply provided that you will do nothing to prejudice our rights of subrogation against such repair station or repair facility SPECIAL INSURING AGREEMENTS 1 USE OF OTHER AIRCRAFT Coverages A, B, C, D and E - If you are an individual or ane individual and spouse, such insurance as is afforded under Coverages A, B, C, D and E with respect to the Aircraft described in Item 5 of the Declarations is extended to apply with respect to the use, by you or on your behalf of any other aircraft bearing a "Standard" airworthiness certificate not owned in whole or in part by, or furnished for regular use to you or your spouse The insurance provided by this Agreement applies only to you and your spouse In the event that the Aircraft has a Passenger capacity greater than that of any Aircraft listed in the Declarations, then our liability under Coverages D and E for Passenger claims will be determined in accordance with the provisions of the "Limit of Our Liability" section of this Policy as if the aircraft involved had the same seating capacity as that Aircraft listed in the Declarations which has the greatest seating capacity 1I AUTOMATIC INSURANCE FOR NEWLY ACQUIRED AIRCRAFT Coverages A, B, C, D and E - If you acquire ownership of an aircraft having a Standard Airworthiness Certificate in addition to the Aircraft described in Item 5 of the Declarations and within thirty (30) days thereafter report such acquisition to the Aviation Managers, then the insurance afforded by Coverages A, B, C, 0 and E will apply to such additional aircraft as of the time of such acquisition, provided that we insure all other aircraft owned in whole or in part by you on such acquisition date Unless you and we agree otherwise the coverages and Limits of Liability pertaining to said additional aircraft will be the same as is provided for that Aircraft described in Item 5 of the Declarations having the greatest Passenger carrying capacity You agree to pay any additional premium required because of the application of this insurance to such other aircraft All coverages provided by this Agreement will cease to apply upon expiration of the Policy to which it is attached EXCLUSIONS This Policy does not apply 1 To anyone insured under this Policy while the Aircraft is In Flight with your knowledge and consent or that of any your executive officers, partners, or managing agents for any unlawful purpose, or any purpose not designated in the Declarations 2 To anyone who is an Insured under this Policy while the Aircraft is In Flight a) if piloted by other than the pilot or pilots designated in the Declarations, NAC-02-PB1-1215 Page 7 of 16 b) if piloted by a pilot not properly certificated qualified and rated under the current applicable Federal Air Regulations for the operation involved, whether or not said pilot is designated in the Declarations, c) if the Airworthiness Certificate of the Aircraft is not in full force and effect, or d) if the Aircraft has not been subjected to appropriate airworthiness inspection(s) as required under current applicable Federal Air Regulations for the operation involved 3 To any loss, injury or damage arising from war, invasions, civil war, revolution, rebellion, strikes, riots, civil commotions, labor disturbances, insurrection or warlike operations, whether there be a declaration of war or not 4 To any loss, injury or damage arising from any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive for or matter 5 To Bodily Injury, Property Damage, loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever, any consequential loss, or any legal liability of whatsoever nature directly or indirectly caused by or contributed to, resulting or arising from radioactive contamination 6 To any loss injury or damage arising from any act of one or more persons, whether or not agent of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional 7 To any loss, injury or damage arising from any malicious act or act of sabotage 8 To any loss, injury or damage arising from confiscation, nationalization, seizure, restraint, detention, appropriation, requisition by or under any government, public or local authority 9 To any loss, injury or damage arising from hijacking or any unlawful seizure or wrongful exercise of control of an Aircraft or crew (including any attempted seizure or control), made by any person or persons on board the Aircraft acting without the consent of the Insured 10 Under Coverages A, B, C, D, and E a) Other than an Airport contract that the Insured signs with a military or governmental authority as a prerequisite to the use of an airport, there is no coverage for liability assumed by the Insured under any contract which is with or for the benefit of Passengers or their heirs or is with or for the benefit of any manufacturers of your Aircraft or any of its parts, or applies to damage which is the result of any major alteration or repairs, or to which the Insured or another party orally agrees, unless the agreement is an airport contract which is required by a governmental body in order to use the airport b) To anyone Insured under this Policy who is also an Insured under a contract of nuclear energy liability insurance issued by the Nuclear Energy Liability Insurance Association or the Mutual Atomic Energy Liability Underwriters and in effect at the time of the Occurrence resulting in such injury, sickness, disease, death or destruction, provided, such contract of nuclear energy liability insurance will be deemed to be in effect at the time of such Occurrence notwithstanding such contract has terminated upon exhaustion of its limit of liability, c) i) To claims directly or indirectly occasioned by, happening through or in consequence of 1 noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, 2 pollution and contamination of any kind whatsoever, 3 electrical and electromagnetic interference, 4 interference with the use of property, unless caused by a crash or collision of Aircraft or a recorded In Flight emergency causing abnormal Aircraft operation ii) With respect to any provision in this Policy concerning any duty of ours to investigate or defend claims, such provision will not apply and we will not be required to defend NAC-02-PB1-1215 Page 8 of 16 1 claims excluded by paragraph c) i), or 2 a claim or claims covered by the Policy when combined with any claims excluded by paragraph c) r) referred to below as "Combined Claims" iii) 1n respect of any Combined Claims, we will (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 claim or claims covered by the Policy, 1 damages awarded against you, and 2 defense fees and expenses you incur, d) To claims in respect of death, Bodily Injury, illness or disease of any person or persons and/or damage to or destruction of property caused by or resulting from the use by you or your agent of any forms of chemical dispersed from the Aircraft 11 Under Coverages A, C, and D a) to any obligation for which you or any carrier as your insurer may be held liable under any worker's compensation, unemployment compensation or disability benefits law, or under any similar law, b) to Bodily Injury to any of your employees arising out of and in the course of his employment by you, c) to Bodily Injury or death of anyone appearing in the Declarations as a Named Insured 12 Under Coverages 13 and D to Property Damage to property you own, occupy, rent or use or which is in your care, custody or control or carried in or on any Aircraft, but this exclusion does not apply, as respects the Named Insured appearing in the Declarations to a) damages not exceeding $5,000 for damage or loss of the personal effects and Baggage of any Guest Passenger in any one Occurrence, or b) damages not exceeding $250,000 any one Occurrence for damage to hangars you do not own 13 Under Coverages F and G a) to loss or damage due to conversion, embezzlement or secretion by any person in possession of the Aircraft under a bailment, lease, rental agreement conditional sale, purchase agreement, mortgage or other encumbrance, nor for any loss or damage during or resulting therefrom, b) to loss or damage to wearing apparel and other personal effects, c) to loss or damage which is due and confined to wear and tear, deterioration, freezing, mechanical, hydraulic pneumatic, structural or electrical breakdown or failure or to tires unless damaged by fire or stolen, unless any such loss or damage is the direct result of other Physical Damage covered by this Policy, d) to loss or damage arising from capture, confiscation, seizure, arrest, restraint or detention or the consequences thereof or of any attempt, threat, or any taking of the property insured or damage to or destruction thereof by any government or governmental authority or agent (whether secret or otherwise) or by any military, naval or usurped power whether any of the foregoing to be done by way of requisition or otherwise and whether in time of peace or war and whether lawful or unlawful, e) damage to turbine engines caused by excessive heat which results from operations, attempted operation or shutdown of the engine NAC-02-PB1-1215 Page 9 of 16 LIMIT OF OUR LIABILITY ALL COVERAGES (Other Insurance) Except with respect to insurance afforded by Special Insuring Agreement 1 and to insurance that you specifically purchase to apply in excess of this Policy, if there is other insurance available to you, against loss, liability or expense covered by this Policy, we will not be liable under this Policy for a greater proportion of such loss, liability or expense than the applicable limit of our liability bears to the total applicable Limit of Liability of all valid and collectible insurance against such loss, liability or expense Insurance afforded by Special Insuring Agreement I is excess insurance over any other valid and collectible insurance available to you, either as an Insured under a Policy applicable to the Aircraft or otherwise and, if such other insurance has been written through the Aviation Managers as primary insurance, then our Limits of Liability under this Policy will be reduced by the applicable limits of such other Policy COVERAGES A, B, C and D (Total Liability) Regardless of the number of Insureds under this Policy, persons or organizations who sustain Bodily Injury or Property Damage, claims made or suits brought on account of Bodily Injury or Property Damage, or Aircraft to which this Policy applies our liability is limited as follows Coverages A and C - Our total liability for ail damages, including damages for care and loss of services, because of Bodily Injury sustained by any person as the result of any one Occurrence will not exceed the Limit of Liability stated in the Declarations as applicable to "each person" Subject to the above provision respecting "each person", our total liability for all damages for care and loss of services, because of Bodily Injury sustained by two or more persons as the result of any one Occurrence will not exceed the Limit of Liability stated in the Declarations as applicable to 'each Occurrence" Coverage B - Our total liability for all damages because of all Property Damage sustained by one or more persons or organizations as the result of any one Occurrence will not exceed the Limit of Liability stated in the Declarations as applicable to "each Occurrence" Coverage D - Our total liability for all damages, including damages for care and loss of services, because of Bodily Injury or Property Damage sustained by one or more persons or organizations as the result of any one Occurrence shall not exceed the Limit of Liability stated in the Declarations as applicable to "each Occurrence" And further provided that, if the Declarations are completed to show "Passenger Liability Limited To", our total liability for all damages, including damages for care and loss of services because of Bodily Injury to Passengers will not exceed a) as respects any one Passenger, the amount stated in the Declarations as applicable to "each person", b) as respects two or more Passengers, subject to the above provisions respecting any one Passenger, the amount stated in the Declarations as applicable to ' each person" multiplied by the number of Passengers on board the Aircraft or by the number of Passenger seats as stated in Item 5 for the Aircraft involved (whichever is less), but in no event will our liability for all Bodily Injury (including Passenger Bodily Injury) and Property Damage exceed the limits stated in the Declarations as applicable to "each Occurrence" For the purpose of determining the limit of our liability, all Bodily Injury and Property Damage arising out of continuous or repeated exposure to substantially the same general conditions will be considered as arising out of one Occurrence COVERAGES A, B, C AND D (Severability of interests) The insurance afforded applies separately to each Insured against whom claim is made or suit is brought, except with respect to the limits of our liability COVERAGE E (Total Liability) The limit of liability stated in the Declarations as applicable to "each person" is the limit of our liability for all Medical Expenses incurred by or on behalf of each person who sustains Bodily Injury, sickness, or NAC-02-PB1-1215 Page 10 of 16 disease, including death resulting therefrom, in any one Occurrence The Limit of Liability stated in the Declarations for Coverage E as applicable to "each Occurrence" is, subject to the above provision respecting each person, the total limit of our liability for all expenses incurred by or on behalf of two or more persons who sustain Bodily Injury, sickness or disease, including death resulting therefrom in any one such Occurrence COVERAGES F AND G (Total Liability) With respect to Total Loss, we will pay the insured value of the Aircraft, as stated in the Declarations, subject to any applicable deductible With respect to Partial Loss, we will pay, subject to any applicable deductible 1) If you do not make your own repairs, then the reasonable cost to repair the damaged property with material of like kind and quality (excluding any charges for overtime), plus the cost of the least expensive, reasonable method of transporting new and/or damaged parts and/or the damaged Aircraft to the place of repair and the return of the repaired Aircraft to the place where the loss occurred or the place where the Aircraft is regularly based, whichever is nearer, 2) if you make your own repairs, the total of the following a) actual cost to the Insured of material of like kind and quality, b) 200% of actual wages paid for labor, excluding any overtime, overhead, supervisory services and all other related services, c) cost of the least expensive reasonable method of transporting new and/or damaged parts and/or the damaged Aircraft to the place of repair and the return of the repaired Aircraft to the place where the loss occurred or the place where the Aircraft is regularly based, whichever is nearer The amount due under this Policy with respect to Partial Loss will not exceed the amount due were the loss payable as a Total Loss In the event that we declare an Aircraft covered hereunder a Total Loss, we agree to provide the Named Insured shown in Item 1 of the Declarations the opportunity to purchase whatever salvaged property might be available before that salvage is made available for sale to independent parties The Named Insured shall have no obligation to make such purchase and the price and timing of any such transaction will be mutually agreed between you and us or our claims administrator If the Named Insured does not purchase the available salvage, any value remaining will inure to our benefit Equipment installed in the Aircraft subsequent to the effective date of coverage will be considered a part of the Aircraft and its salvage value will inure to our benefit There will, however, be no abandonment of any damaged property without our prior consent If the loss is due to theft, we will have the right to return the stolen property at any time prior to actual payment of the claim hereunder, with payment for any Physical Damage sustained thereto DEFINITIONS Whenever used in this Policy, 1 Aircraft means the aircraft described in the Declarations or any aircraft qualifying under the provisions of the Special Insuring Agreements and includes propulsion systems, operating navigation and radio equipment usually attached thereto, and parts and repair equipment which are standard for the make and type of aircraft Parts temporarily detached from the Aircraft which have not been replaced by other similar parts will be deemed part of the Aircraft 2 Aviation Managers means W Brown & Associates Insurance Services 3 Baggage means handbags, suitcases, valises, briefcases and other forms of baggage usually carried by travelers and the contents thereof 4 Bodily Injury means bodily injury, sickness, disease or mental anguish sustained by any person which occurs during the Policy Period, including death at any time resulting therefrom 5 Disappearance means missing and not reported by sixty (60) days after commencing the last known flight NAC-02-PB1-1215 Page 11 of 16 ....,.r._:.;._.,e:�.,.,::..;.y_�.:r �.- l',� r.,a.,,, S.�r:,:., 7:,-ot a:: -:,..e;..,:: -.y:._. ,r.�.,,,. 5�.� »,.✓ Jt'.,,:,.se�.,.a...,..�,.-m:a�,..va.r.rr,._wia:,..z.,.da.�:�.�✓..�i,.:✓_:...:r �.v�.,,.,..._.w.i,.w_�.a._:.s.;.�..,..,.,�«,..,_ .,a.;.,.,..,i,.,,,��.. .a 6 Federal Aviation Administration means the duly constituted authority of the United States of America having jurisdiction over civil aviation, or its duly constituted equivalent in any other country 7 Guest means any person, including an employee of the Insured whether or not in the course of his employment, who has received an express or implied invitation from the Named Insured to enter the Aircraft for the purpose of riding or flying therein 8 In Flight means the time commencing with the actual takeoff run of the Aircraft and continuing thereafter until it has completed its landing roll If the Aircraft is a rotorcraft, from the time the rotors start to revolve under power for the purpose of flight until they subsequently cease to revolve 9 In Motion means anytime the Aircraft is moving under its own power or the momentum generated by its own power, or while it is in Flight If the Aircraft is a rotorcraft, any time that the rotors are rotating 10 Insured The unqualified word "Insured", wherever used in this Policy with respect to Coverages A, B, C and D, includes not only the Named Insured but also any person while using or riding in the Aircraft and any person or organization legally responsible for its use, provided the actual use is with the express permission of the Named Insured Except with respect to the Named Insured the provisions of this paragraph do not apply a) to any employee with respect to Bodily Injury, sickness, disease or death of another employee of the same employer injured in the course of such employment, b) to any person or organization or to any agent or employee thereof (other than any employee of the Named Insured while acting in the scope and course of his employment by the Named Insured) engaged in the manufacture or sale of Aircraft, Aircraft engines or Aircraft accessories or in the operation of an Aircraft repair shop, airport hangar, Aircraft sales agency, Aircraft rental service, commercial flying service or flying school with respect to any Occurrence arising out of such manufacture, sale or operations, c) to any person engaged in providing flight instruction for hire or reward d) to any person operating the Aircraft who has paid or agreed to pay the Named insured for the use of said Aircraft e) to the owner or lessor, or any agent or employee thereof, of any Aircraft which is the subject of the provisions of Special insuring Agreement 1 11 Medical Expense means expenses for necessary medical, surgical, x-ray or dental services, including prosthetic devices, and necessary ambulance hospital professional nursing and funeral services, but excluding monuments, head stones or burial plots 12 Mobile Equipment means any of the following types of land vehicles, including any attached machinery or equipment a) bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads, b) vehicles maintained for use solely on or next to airport Premises, c) vehicles that travel on crawler treads d) vehicles whether self-propelled or not, maintained primarily to provide mobility to permanently mounted power cranes shovels loaders, diggers or drillers, or e) road construction or resurfacing equipment such as graders, scrapers or rollers, f) vehicles not described above that are not self-propelled and are maintained pnmanly to provide mobility to permanently attached equipment of the following types, air compressors, pumps and generators, including spraying, welding, building cleaning geophysical exploration lighting and well service equipment, g) cherry pickers and similar devices used to raise or lower workers h) vehicles not described above maintained primarily for purposes other than the transportation of persons or cargo NAC-02-PB1-1215 Page 12 of 16 13 Named Insured means the person or organization named in Item 1 of the Declarations 14 Occurrence means an accident, including continuous or repeated exposure to conditions, which results in Bodily Injury or Property Damage during the Policy Period, neither expected nor intended from the standpoint of the Insured 15 Partial Loss means any Physical Damage loss which is not a Total Loss 16 Passenger means any person in, on or boarding the Aircraft for the purpose of riding or flying in it, or exiting from it after a ride, flight or attempted flight including pilot(s) or crew member(s) 17 Personal Injury means injury, other than Bodily Injury, arising out of one or more of the following offenses a) false arrest, detention or imprisonment, b) malicious prosecution, c) oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services, d) oral or written publication of material that violates a person's right of privacy, or e) misdirection of a person to an Aircraft or other conveyance 18 Physical Damage means direct and accidental physical loss of or damage to the Aircraft, hereinafter called loss, but does not include loss of use or any residual depreciation in value, if any, after repairs have been made 19 Pleasure and Business means used in the business of the Insured, including personal and pleasure uses, but excluding any operation for hire or reward Cost reimbursement will be included within the definition of Pleasure and Business provided that such cost reimbursement is limited to a) Fuel, oil, lubricants and other additives, b) Expenses of the crew, including food, lodging, and ground transportation, but excluding salary or wages, c) Hangar and tie -down costs away from the Aircraft's base of operation, d) Insurance obtained for the specific flight, e) Landing fees and similar assessments f) Customs, foreign permit, and similar fees directly related to the flight, g) In Flight food and beverages, h) An additional charge equal to 100% of the expenses listed in items a) through g) above 20 Premises means such portions of airports as are designated and used for the parking or storage of aircraft, including Premises you own or lease for more than thirty (30) days 21 Property Damage means (a) physical injury to or destruction of tangible property which occurs during the Policy Period, including loss of use thereof at any time resulting therefrom, or (b) Toss of use of tangible property which has not been physically injured or destroyed provided such loss of use is caused by a covered Occurrence 22 Related Claims means all claims for care and loss of service, loss of society and consortium, emotional distress, loss of support medical and funeral expenses, and any and all other damage claims by a person or persons arising out of Bodily Injury to another person Notwithstanding anything to the contrary in the definition of Bodily Injury, the Company's liability and coverage for damages for both Bodily Injury and Related Claims are included and combined within the "each person" and "each Occurrence" Limits of Liability specified in the Declarations as applicable, and there are no separate or additional Limits of Liability for Related Claims 23 Total Loss means any Physical Damage loss for which the cost to repair when added to the salvage value (the value of the Aircraft after Physical Damage and prior to repairs) equals or exceeds the insured value of the Aircraft as set forth in Item 5 of the Declarations Disappearance or theft of the entire Aircraft will be considered a Total Loss NAC-02-PB1-1215 Page 13 of 16 CONDITIONS APPLICABLE TO COVERAGES A, B, C AND (BODILY INJURY AND PROPERTY DAMAGE) 1 NOTICE OF OCCURRENCE When an Occurrence takes place, written notice will be given by you or on your behalf to the Aviation Managers at their nearest office as soon as practicable Such notice will contain details sufficient to identify the Insured and also reasonably obtainable information respecting the time, place and circumstances of the Occurrence, the names and addresses of the injured parties and of available witnesses 2 NOTICE OF CLAIM OR SUIT If claim is made or suit is brought against you, you will immediately forward to the Aviation Managers every demand, notice, summons or other process received by you or your representative 3 SEVERABILITY OF INTEREST The terms "Insured', 'you' and yours" is used severally and not collectively but the inclusion herein of more than one Insured will not operate to increase the limits of the Company's liability 4 ACTION AGAINST US No action will lie against us in respect of Coverages A B C and D unless, as a condition precedent thereto, you have fully complied with all the terms of this Policy, nor until the amount of your obligation to pay will have been finally determined either by judgment against you after actual trial or by your written agreement with the claimant and us Any person or organization or the legal representative thereof who has secured such judgment or written agreement will thereafter be entitled to recover under this Policy to the extent of the insurance afforded by this Policy Nothing contained in this Policy gives any person or organization any right to join us as a co-defendant in any action against you to determine the Insured's liability 5 BANKRUPTCY AND INSOLVENCY Bankruptcy or insolvency of you or of your estate will not relieve us of any of our obligations hereunder 6 FINANCIAL RESPONSIBILITY LAWS Such insurance as is afforded by this Policy will comply with the provisions of any financial responsibility law of any State or Province applicable to Aircraft with respect to liability arising out of the ownership, maintenance or use of the Aircraft during the Policy Period, to the extent of the coverage and Limits of Liability required by such law, but in no event in excess of the Limits of Liability stated in this Policy You agree to reimburse us for any payment we make which we would not have been obligated to make under the terms of this Policy except for such law or the agreement contained in this paragraph APPLICABLE TO COVERAGE E (MEDICAL EXPENSE) 7 MEDICAL REPORTS PROOF AND PAYMENT OF CLAIM As soon as practicable the injured person or someone on their behalf will give us written proof of claim, under oath if required, and will, after each request by us, execute authorization to enable us to obtain medical reports and copies of records The injured person will submit to physical examination by a physician we select when and as often as we may reasonably require We may pay the injured person or any person or organization rendering the services, and such payment will reduce the amount payable hereunder for such injury Payment hereunder will not constitute admission of your liability, or except hereunder, of ours 8 ACTION AGAINST COMPANY No action will lie against us in respect of Coverage E unless, as a condition precedent thereto, there will have been full compliance with all the terms of this Policy, nor until thirty (30) days after the required proofs of claim have been filed with us APPLICABLE TO COVERAGES F AND G (PHYSICAL DAMAGE) 9 YOUR DUTIES WHEN LOSS OCCURS When loss occurs, you agree to a) protect the Aircraft, provided you are able to do so, whether or not the loss is covered by this Policy, and any further loss due to the insured's failure to protect will not be recoverable under this Policy, reasonable expense incurred in affording such protection will be deemed incurred at our request, b) give notice thereof as soon as practicable to the Aviation Mangers, and, also, in the event of theft, to the police, but not, except at your own cost, offer to pay any reward for recovery of the Aircraft, NAC-02-PB1-1215 Page 14 of 16 c) file proof of loss with the Aviation Managers, or us, within sixty (60) days after the Occurrence of loss, unless we or the Aviation Managers extend such time in writing, in the form of your sworn statement setting forth your interest and that of all others in the property affected, any encumbrances thereon, the actual cash value thereof at time of loss, the amount, place, time and cause of such loss, and the description and amounts of all other insurance covering such property Upon our request, you will show the damaged property to us, and produce for our examination all pertinent records and sales invoices, or certified copies if originals are lost, permitting copies thereof to be made, all at such reasonable times and places as we designate 10 APPRAISAL If you and we fail to agree as to the amount of loss, each will on the written demand of either, made within sixty (60) days after our receipt of your proof of loss, select a competent and disinterested appraiser and the appraisal will be made at a reasonable time and place The appraisers will first select a competent and disinterested umpire, and failing for fifteen (15) days to agree upon such umpire, then, on our request or yours, such umpire will be selected by a judge of a court of record in the county and state in which such appraisal is pending The appraisers will then appraise the loss, stating separately the amount of loss and failing to agree will submit their differences to the umpire An award in wnting of any two will determine the amount of loss You and we will each pay his or its chosen appraiser and will bear equally the other expenses of the appraisal and the umpire We will not be held to have waived any of our rights by any act relating to appraisal 11 PAYMENT FOR LOSS ACTION AGAINST US Payment for loss may not be required nor will action lie against us in respect of Coverages F and G unless, as a condition precedent thereto (1) you have complied with all the terms of this Policy, (2) at least sixty (60) days have elapsed since the filing of proof of loss and the amount of loss is determined as provided in this Policy, and (3) any action against us is commenced within twelve (12) months after the loss takes place 12 NO BENEFIT TO BAILEE The insurance afforded by this Policy will not inure directly or indirectly to the benefit of any carrier or bailee liable for loss to the Aircraft 13 AUTOMATIC REINSTATEMENT In the event of loss whether or not covered by this Policy, the amount of insurance in respect to any Aircraft will be reduced as of the time and date of loss by the amount of such loss and such reduced value will continue until repairs are commenced when the amount of insurance will be automatically increased by the value of the completed repairs until the amount of insurance is fully reinstated or the Policy has expired APPLICABLE TO ALL COVERAGES 14 ASSISTANCE AND COOPERATION OF THE INSURED You will cooperate with us and, upon our request will attend hearings and trials and will assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits Further upon aur request, you will submit to examinations under oath by anyone we designate You will not, except at your own cost, voluntarily make any payment, assume any obligation or incur any expense other than for such immediate medical and surgical relief to others as will be imperative at the time of an Occurrence 15 INSPECTION AND AUDIT We or the Aviation Managers or parties we designate will be permitted to inspect the Aircraft and any records pertaining thereto during the Policy Period or within one (1) year thereafter 16 SUBROGATION Except in respect to Coverage E, in the event of any payment under this Policy, we will be subrogated to all of your rights of recovery therefore against any person or organization and you will execute and deliver instruments and papers and do whatever else is necessary to secure such rights You will do nothing after the loss to prejudice such rights 17 CHANGES Notice to any agent or knowledge possessed by any agent or by any other person does not waive or change any part of this Policy or prohibit us from asserting any right under the terms of this Policy, nor are the terms of this Policy waived or changed, except by endorsement issued to form a part of this Policy signed by the Aviation Managers 18 ASSIGNMENT Assignment of interest under this Policy will not bind us until our consent is endorsed hereon by the Aviation Managers, if, however, you die or are adjudged bankrupt or insolvent within the Policy Period and written notice is provided to us within sixty (60) days after the date of such death or adjudication, this Policy, unless cancelled, will cover (1) your legal representative as the Named Insured, and (2) subject otherwise to the provisions of the definition of Insured, any person having proper temporary custody of the Aircraft, as an Insured, until the appointment and NAC-02-PB1-1215 Page 15 of 16 qualification of such legal representative but in no event for a period of more than sixty (60) days after the date of such death or adjudication 19 CANCELLATION You may cancel this Policy by mailing to the Aviation Managers, written notice stating the date thereafter on which such cancellation will be effective We or the Aviation Managers, may cancel this Policy, by mailing written notice to you at the address shown in the Policy stating when not less than thirty (30) days (10 days for nonpayment) thereafter such cancellation will be effective The mailing of such notice will be sufficient proof of notice and the Policy Period will end at the effective date and hour of cancellation stated in the notice Delivery of such written notice either by you, us or the Aviation Managers will be equivalent to mailing if you cancel, we will compute earned premium in accordance with the customary short rate table and procedure If we or the Aviation Managers cancel, earned premium will be computed on a pro rata basis Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation 20 TOTAL LOSS Irrespective of anything to the contrary in this Policy, we will not return any unearned Physical Damage premium relative to an Aircraft on which a Total Loss has been paid unless required by State regulation 21 FRAUD OR MISREPRESENTATION This Policy will be void if you have concealed or misrepresented any material fact or circumstance concerning this insurance or if you have sworn falsely touching any matter relating to this insurance or the subject thereof whether before or after a loss 22 TERMS OF POLICY CONFORMED TO STATE LAWS Terms of this Policy which are in conflict with the laws of the State wherein this Policy is issued are hereby amended to conform to such laws 23 DECLARATION By acceptance of this Policy you agree that the statements in the Declarations are your agreements and representations, that this Policy is issued in reliance upon the truth of such representations and that this Policy embodies all agreements existing between you, the Aviation Managers and us or any of their agents relating to this insurance NAC-02-PB1-1215 Page 16 of 16 NAC -70-1215 Page 1 of 1 COMPLETION ENDORSEMENT Policy Number NAB6028246 Endorsement # 1 Named Insured Phoenix Service Corp Company Endurance American Insurance Co Effective Date 10122/2019 Aviation Managers Date Issued 10/22/2019 This endorsement is part of your policy and takes effect on the effective date of your policy unless another effective date is shown above THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY It is hereby understood and agreed that Pilots as shown in Item 6 of the Policy Declaration is completed to read as follows ITEM 6 All flight hours and training used to satisfy the Pilot Warranties below must have occurred in the same aircraft category and class as the aircraft shown in the Declarations For the purpose of this section the terms "category" and 'class" are as defined in the Code of Federal Regulations, Title 14, Chapter I, Part 1, Section 1 1 (14CFR1 1) John Van Blarcom, who must obtain an Instrument Proficiency check ride in the make and model within 12 months preceding the intended flight Otherwise, any commercial pilot with multi -engine land and instrument ratings having 2,000 hours total time 100 hours multi -engine, 100 hours in the make and model and who must obtain an Instrument Proficiency check ride in the make and model within 12 months preceding the intended flight All other terms and conditions of the policy remain unchanged THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY End of Endorsement — NAC -70-1215 NAC -70-1215 Endorsement # 1 - Page 1 of 1 NAX-01-1215 Page 1 of 1 ADDITIONAL INSURED Policy Number NAB6028246 Endorsement # 2 Named insured Phoenix Service Corp Company Endurance American Insurance Co Effective Date 10/22/2019 Aviation Managers _..(/ Date Issued 10/22/2019 This endorsement is part of your policy and takes effect on the effective date of your policy unless another effective date is shown above THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY In consideration of the premium paid and notwithstanding anything in the policy to the contrary, this endorsement amends the policy as shown below The following is included as Additional Insured(s) but only to the extent of liability imposed upon Additional Insured(s) solely as the result of an act or omission of the Named Insured or its employees in connection with the Named lnsured's Operations City of Redlands 35 Cajon Street Redlands, CA 92373 All other terms and conditions of the policy remain unchanged THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY, End of Endorsement — NAX-01-1215 NAX-01-1215 Endorsement # 2 - Page 1 of 1 NAX-06-1215 Page 1 of 2 ASBESTOS EXCLUSION (WITH EXCEPTION FOR CRASH, FIRE, EXPLOSION, COLLISION OR RECORDED IN-FLIGHT EMERGENCY) Policy Number NAB6028246 Endorsement # 3 Named Insured Phoenix Service Corp Company Endurance American Insurance Co Effective Date 10/22/2019 Aviation Managers ,(.(/J Date Issued 10/22/2019 This endorsement is part of your policy and takes effect on the effective date of your policy unless another effective date is shown above THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following COMMERCIAL GENERAL LIABILITY AVIATION COVERAGE PART AIRCRAFT HULL AND LIABILITY COVERAGE PART AIRPORT LIABILITY PRODUCTS — COMPLETED OPERATIONS HAZARD COVERAGE PART AVIATION PRODUCTS LIABILITY COVERAGE PART NON -OWNED AIRCRAFT LIABILITY COVERAGE PART In consideration of the premium paid and notwithstanding anything in the policy to the contrary, this endorsement amends the policy as shown below I Asbestos Exclusion A This insurance does not apply to 1 Any "injury, damage, loss or expense' based upon or arising out of the actual or alleged existence, presence, inhalation absorption or ingestion of, exposure to or use of "asbestos", including but not limited to the following a The installation, storage or handling of "asbestos", b The manufacture, distribution, sale, application mining, consumption, or disposal of "asbestos" or goods, products or materials containing "asbestos", c The removal, abatement, containment, treatment, transportation or disposal of "asbestos", d The presence or alleged presence of "asbestos" in any structures, manufacturing processes, products or materials, or in any media including the air, soil or groundwater, or e Any directions, supervision, instructions, recommendations warnings or advice given or which should have been given with respect to "asbestos" 2 Any loss, cost or expense arising out of any a Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove contain treat, detoxify or neutralize, or in any way respond to or assess the effects of "asbestos", or b Claim or "suit" by or on behalf of a governmental entity or others for damages because of testing for, monitoring, cleaning up removing, containing, treating, detoxifying or neutralizing, or in any way responding to or assessing the effects of "asbestos" MAX -06-1215 Endorsement # 3 - Page 1 of 2 NAX-06-1215 Endorsement # 3 - Page 2 of 2 B This exclusion applies regardless of whether the insured or others manufactured, distributed, sold, installed, or in any way handled, used, stored or controlled the asbestos" and regardless of whether the alleged or actual presence of "asbestos" contributed concurrently or in any sequence to any "injury, damage, loss or expense" C This exclusion replaces any other asbestos exclusion set forth in the Policy Coverage Form II Exception for Crash, Fire, Explosion, Collision or Recorded In-flight Emergency This exclusion does not apply to any "injury, damage, loss or expense" otherwise covered by this Policy caused by exposure to asbestos" resulting from a crash, fire, explosion or collision, or a recorded in-flight emergency causing abnormal aircraft operations HI Definitions The following definitions apply to this Endorsement 1 "Asbestos" means any form of the mineral known as asbestos or any form of impure magnesium silicate, including but not limited to any material, waste, equipment, device or product containing asbestos, or any dust or particles containing asbestos, whether or not the asbestos is friable and whether or not the asbestos is in or on any structure or in the air, soil, or groundwater or in any other media 2 "Injury, damage, loss or expense" means any injury, damage, loss or expense covered under any Coverage Form or Policy to which this endorsement applies, and includes but is not limited to bodily injury, property damage, personal and advertising injury, medical expenses or any other coverages as may be defined under this Policy or any applicable endorsement All other terms and conditions of the policy remain unchanged THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY End of Endorsement -- NAX-06-1215 NAX-06-1215 Endorsement # 3 - Page 2 of 2 NAC -81-1215 Page 1 of 1 AMENDING DESCRIPTION OF AIRWORTHINESS CERTIFICATES Policy Number NAB6028246 Endorsement # 4 Named Insured Phoenix Service Corp Company Endurance American Insurance Co Effective Date 10/2212019 Aviation Managers Date Issued 10/22/2019 This endorsement is part of your policy and takes effect on the effective date of your policy unless another effective date is shown above THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY In consideration of the premium paid and notwithstanding anything in the policy to the contrary, this endorsement amends the policy as shown below It is agreed that any and all policy references to the term "Standard" with respect to Airworthiness Certificates are hereby deleted and replaced by the term "Current" when describing Airworthiness Certificates All other terms and conditions of the policy remain unchanged THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY End of Endorsement -- NAC -81-1215 NAC -81.1215 Endorsement # 4 - Page 1 of 1 NAC -21-1215 Pagel oft WAR, HIJACKING AND OTHER PERILS EXCLUSION ENDORSEMENT Policy Number NAB6028246 Endorsement # 5 Named Insured Phoenix Service Corp Company Endurance American Insurance Co Effective Date 10/22/2019 Aviation Managers ./,(/.,100/01-0-1-a73Date Issued 10/22/2019 This endorsement is part of your policy and takes effect on the effective date of your policy unless another effective date is shown above THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY It is understood and agreed that, notwithstanding any other policy provision, this policy does not cover claims caused by (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 (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 (c) Strikes, riots, civil commotions or labor disturbances (d) Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the Toss or damage resulting therefrom is accidental or intentional (e) (f) (g) 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 This endorsement does not change the policy except as stated above and is not valid unless approved by our Aviation Managers All other terms and conditions of the policy remain unchanged THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY End of Endorsement — NAC -21.1215 NAC -21-1215 Endorsement # 5 - Page 1 of 1 IL 1201 0115 Page 1 of 2 CERTIFIED ACT OF TERRORISM EXCLUSION Policy Number NAB6028246 Endorsement # 6 Named Insured Phoenix Service Corp Company Endurance American Insurance Co Effective Date 10/22/2019 Aviation Managers ,,l% IrAT-"fa' Date Issued 10/22/2019 This endorsement is part of your policy and takes effect on the effective date of your policy unless another effective date is shown above THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY It is agreed that A This insurance does not apply to Terrorism "Any injury or damage" arising directly or indirectly out of a "certified act of terrorism" or out of an "other act of terrorism" that is committed outside of the United States (including its territories and possessions and Puerto Rico), but within the "coverage territory' However, with respect to an "other act of terrorism", this exclusion applies only when one or more of the following are attributed to such act 1 The total of insured damage to all types of property exceeds $ 25,000,000 (valued in US dollars) In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the terrorism and business interruption losses sustained by owners or occupants of the damaged property For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions, or 2 fifty or more persons sustain death or serious physical injury For the purposes of this provision, serious physical injury means a physical injury that involves a substantial risk of death or b protracted and obvious physical disfigurement, or c protracted loss of or impairment of the function of a bodily member or organ, or 3 the terrorism involves the use or release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination, or 4 the terrorism is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials, or 5 pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials With respect to this exclusion, Paragraph 1 and 2 describe the thresholds used to measure the magnitude of an Incident of an "other act of terrorism" and the circumstances in which the threshold will apply for the purpose of determining whether this exclusion will apply to that incident B The following definitions are added IL 1201 0115 Endorsement # 6 - Page 1 of 2 IL 1201 0115 Endorsement # 6 - Page 2 of 2 1 For the purposes of this endorsement, "any injury or damage" means any injury or damage covered under this policy, or "underlying insurance to which this endorsement is applicable, and includes but is not limited to any Loss Claim or injury as may be defined in any applicable policy, or "underlying insurance" 2 "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in accordance with the provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism pursuant to such Act The criteria contained in the Terrorism Risk Insurance Act for a "certified act of terrorism" include the following a The act resulted in insured losses in excess of $ 5 million in the aggregate, attributable to all types of insurance subject to the Terrorism Risk Insurance Act, and b The act resulted in damage Within the United States (including its territories and possessions and Puerto Rico), or ii Outside of the United States in the case of (a) An air carrier (as defined in Section 40102 of title 49, United States Code) or 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 (b) The premises of any United States mission, and c the act is a violent act or an act that is dangerous to human life, property or infrastructure and is 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 3 "Other act of terrorism" means a violent act or an act that is dangerous to human life, property or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not a "certified act of terrorism" Multiple incidents of an "other act of terrorism" which occur within a severity -two-hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident 4 "Coverage territory" means anywhere in the world with the exception of any country or jurisdiction which is subject to trade or other economic sanctions or embargo by the United States of America C In the event of any incident of a "certified act of terrorism" or an "other act of terrorism" that is not subject to this exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this policy All other terms and conditions of the policy remain unchanged THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY End of Endorsement — IL 1201 0115 IL 1201 0115 Endorsement # 6 - Page 2 of 2 IL13130115 Page1 of1 DISCLOSURE PURSUANT TO TERRORISM RISK INSURANCE ACT REJECTION OF OFFER Policy Number NAB6028246 Endorsement # 7 Named Insured Phoenix Service Corp Company Endurance American Insurance Co Effective Date 10/22/2019 Aviation Managers ./(Z,Date Issued 10/22/2019 This endorsement is part of your policy and takes effect on the effective date of your policy unless another effective date is shown above THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY It is agreed that THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK INSURANCE ACT THIS ENDORSEMENT DOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY A Refection of Offer You have rejected the offer of terrorism coverage for Acts of Terrorism that are certified under the Terrorism Risk Insurance Act as reauthorized and amended, as an Act of Terrorism An exclusion of terrorism losses has been made a part of this policy B Disclosure of Federal Participation in Payment of Terrorism Losses The United States government, Department of the Treasury, will pay a share of terrorism losses insured under the federal program The federal share equals 85% in 2015 and decreases its share 1% each calendar year to a total of 80% in 2020 of that portion of the amount of such insured losses that exceeds the applicable insurer retention You have rejected this offer of coverage All other terms and conditions of the policy remain unchanged THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY End of Endorsement — IL 1313 0115 IL 1313 0115 Endorsement # 7 - Page 1 of 1 NAX-90-DE-1215 Page 1 of 1 CANCELLATION AND NON -RENEWAL ENDORSEMENT - DELAWARE Policy Number NAB6028246 Endorsement # 8 Named Insured Phoenix Service Corp Company Endurance American Insurance Co Effective Date 10/22/2019 Aviation Managers Date Issued 10/22/2019 This endorsement is part of your policy and takes effect on the effective date of your policy unless another effective date is shown above THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY It is hereby agreed that the Cancellation and Non -Renewal Conditions in the policy are deleted and replaced with the following CANCELLATION AND NON -RENEWAL A Cancellation 1 The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation 2 We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least a 10 days before the effective date of cancellation if we cancel for nonpayment of premium, or b 60, but not more than 120, days before the effective date of cancellation if we cancel for any other permissible reason 3 We will marl or deliver our notice to the first Named Insured's last mailing address known to us 4 Notice of cancellation will state the effective date of cancellation The policy period will end on that date 5 if this policy is cancelled, we will send the first Named Insured any premium refund due If we cancel, the refund will be pro rata If the first Named Insured cancels, the refund may be less than pro rata The cancellation will be effective even if we have not made or offered a refund 6 If notice is mailed proof of mailing will be sufficient proof of notice B Nonrenewal 1 If we decide not to renew this policy, we will mail or deliver written notice of nonrenewal to the first Named Insured at least 60 but not more than 120 days before the expiration date or the anniversary date if this is a policy written for a term of more than one year or with no fixed expiration date 2 Any notice of nonrenewal will be mailed or delivered to the first Named Insured at the last mailing address known to us All other terms and conditions of the policy remain unchanged THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY End of Endorsement — NAX-90-DE-1215 NAX-90-DE-1215 Endorsement # 8 - 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