AIRCRAFT POLICY

In Consideration of the payment of the premium by or on behalf of the Insured (named in the Schedule) prior to the inception date and the Insured having by proposal or declaration, which shall form the basis of this insurance and is deemed to be incorporated herein, applied to Guardrisk Insurance Company for the insurance hereinafter set out, the Insurer agrees subject to the Terms, Conditions, Warranties, Exclusions, Deletions, Definitions, Clauses and limitations contained herein or endorsed hereon, to indemnify or compensate the Insured for any physical loss, damage or liability as provided for in the policy but only in respect of an accident (as defined) occurring during the Period of Insurance as stated in the Schedule hereto. Specific exceptions, conditions and provisions shall override general exceptions, conditions and provisions.

Signed On Behalf of Management: Dated: For: Independent Aviation Underwriters (Pty) Limited on behalf of Guardrisk Insurance Company Ltd

Section I

Loss of or damage to Aircraft

1. Coverage

a) The Insurer will at its option pay for, replace or repair accidental loss of or damage to the Aircraft described in the Schedule hereto arising from the risks covered as stated in the Schedule hereto, including disappearance if the Aircraft is unreported, missing or its whereabouts unknown for fifteen days after the commencement of flight, but not exceeding the amount insured as stated in the schedule hereto and subject to the amount to be deducted shown below in paragraph 3 (iii).

b) If the Aircraft is insured hereby for the risks of “flight” (hereafter defined) the Insurer will in addition pay reasonable emergency expenses necessarily incurred by the Insured for the immediate safety of the Aircraft consequent upon damage or forced or emergency landing up to ten percent (10%) of the amount insured as stated in the Schedule hereto subject to a maximum of R50 000-00.

2. Exclusions applicable to this Section only The Insurer shall not be liable for:

a) wear and tear, deterioration, breakdown, defect or failure howsoever caused and the consequences thereof within any “unit” (hereinafter defined);

b) damage to any unit by anything which has a progressive or cumulative effect but damage attributable to a single recorded incident is covered under paragraph 1 (a) above;

c) any expenses or loss incurred in connection with or directly arising out of the replacement of any undamaged part or parts or unit of the Aircraft which, in terms of Service Bulletins and/or Air Navigation Regulations and/or orders and requirements issued by any competent authority, is required to be repaired or replaced at the time that the repair of accidental damage to the Aircraft is carried out.

However accidental loss of or damage to the Aircraft consequent upon 2 (a) or (b) above is covered under paragraph 1 (a) hereof.

3. Conditions applicable to this Section only

i. If the Aircraft is damaged:

a) no dismantling or repairs shall be commenced without the consent of the Insurer except whatever is necessary in the interest of safety or to

Wear and tear, Breakdown

Modifications or inspection

Dismantling and repairs

b) prevent further damage or to comply with orders issued by the

appropriate authority;

c) the Insurer will pay for the repairs and transport of labour and materials by the most economical method unless the Insurer agrees otherwise with the Insured.

ii) If the Insurer exercises its option to pay for or replace the Aircraft: a) the Insurer may take the Aircraft (together with all documents and/or

records, registration and title thereto) as salvage; b) the cover afforded by this Section is terminated in respect of the Aircraft

even if the aircraft is retained by the Insured for valuable consideration or otherwise;

c) the replacement Aircraft shall be of the same model and type and in reasonably like condition unless otherwise agreed with the Insured.

iii) There shall be deducted from each claim under paragraph 1 (a) and 1 (b) of

this Section:

a) the amount specified in the Schedule hereto and; b) such portion of the “overhaul cost” (hereinafter defined) of any unit

repaired or replaced as the used time bears to the “overhaul life” (hereinafter defined) of the unit.

Amended to read Nil (Betterment endorsement)

iv) Any claim in respect of an engine is restricted to loss or damage caused by theft, lightning, flood, and outbreak of fire external to the engine or by sudden and unexpected impact with a foreign object requiring immediate withdrawal of the engine from service. As used herein “engine” means an engine for propulsion or auxiliary power complete with all parts necessary for the test cell running.

v) Unless the Insurer elects to take the Aircraft as salvage the Aircraft shall at

all times remain the property of the Insured who shall have no right of abandonment to the Insurer. The fact that the Insurer has dealt with the Aircraft in any way whatsoever shall not be construed in such a manner so as to warrant the conclusion that the Insurer has made an election in terms of this Policy.

vi) No claim shall be payable under this Section if other insurance which is

payable in consequence of loss or damage covered under this Section has been or shall be effected by or on behalf of the Insured without the knowledge or consent of the Insurer.

vii) It is understood and agreed that notwithstanding the Agreed Value Clause that may be contained in the policy the Insurer agrees that VAT, calculated at 14% (or as may be amended by the Government from time to time), will be paid in addition to the sum insured as stated in the schedule in the event of the aircraft being a total or constructive total loss.

Payment or replacement

Amounts to be deducted from claims

Engine Clause

No abandonment

Other insurance

Vat Payments

In respect of partial losses VAT will be added to the deductible where such deductible is expressed as a percentage of the sum insured.

Section II

Legal liability to Third Parties (other than passengers)

1. Coverage

The Insurer will indemnify the Insured for all sums which the Insured shall become legally liable to pay and shall pay as compensatory damages (including costs awarded against the Insured) in respect of accidental bodily injury (fatal or otherwise) and accidental damage to property caused by the Aircraft or by any person or object falling there from.

2. Exclusions applicable to this Section only (i) The Insurer shall not be liable for claims arising from:

(a) injury (fatal otherwise) or loss sustained by any director or employee of the Insured or partner in the Insured’s business whilst acting in the course of his employment with or duties for the Insured;

(b) injury (fatal or otherwise) or loss sustained by any member of the flight, cabin or other crew whilst engaged in the operation of the Aircraft;

(c) injury (fatal or otherwise) or loss sustained by any passenger whilst entering, on board or alighting from the Aircraft;

(d) loss of or damage to any property belonging to or in the care, custody or control of the Insured.

(ii) This Policy does not apply to claims directly or indirectly occasioned by

happening through or in consequence of:

(a) noise (whether audible to the human ear or not), vibration, sonic boom, and any phenomena associated therewith;

(b) pollution and contamination of any kind whatsoever; (c) electrical and electromagnetic interference; (d) interference with the use of property

unless caused by or resulting in a crash, fire, explosion or collision, or a recorded in-flight emergency causing abnormal aircraft operation. Nothing in this paragraph shall override General Exclusion 9.

3. Limits of indemnity applicable to this Section only

The liability of the Insurer under this Section shall not exceed the amount stated in the Schedule hereto. The Insurer will in addition defray any legal costs and expenses incurred with its written consent in defending any action which may be brought against the Insured in respect of any claim for compensatory damages covered by this Section but should the amount paid or awarded in settlement of such claims exceed the limit of indemnity then the liability of the Insurer in respect of such legal costs and expenses shall be limited to such proportion of the said legal costs and expenses as the limit of indemnity bears to the amount paid for compensatory damages.

Employees and others

Operational crew

Passengers

Property

Noise and pollution and other perils exclusion clause

Limits

Section III

Legal liability to Passengers

1. Coverage

The Insurer will indemnify the Insured in respect of all sums which the Insured shall become legally liable to pay and shall pay as compensatory damages (including costs awarded against the Insured) in respect of:

(a) accidental bodily injury (fatal or otherwise) to passengers whilst

entering, on board or alighting from the Aircraft and;

(b) loss of or damage to the baggage and personal articles of passengers arising out of any accident to the Aircraft.

Provided always that

(i) before a passenger boards the Aircraft for a flight for reward including flights being conducted in terms of a licence permit or authority held by the Insured duly issued by the competent authority of the country in which the Aircraft is registered authorising carriage of passengers and/or goods and/or any other air service operated for hire or reward, the Insured shall limit its liability for claims under (a) and (b) above up to the maximum amount prescribed in Article 22 (1), (2) (a) and (b) and (3) of the Warsaw Convention dated 12

th

October 1929 as amended by the Hague Protocol dated 28th

September 1955, or other applicable Convention or the minimum amount prescribed by the law of the country in which the Aircraft is registered, whichever is the greater.

(ii) If the measures referred to in proviso (i) above include the issue of a

passenger ticket/baggage check the same shall be delivered correctly completed to the passenger a reasonable time before the passenger boards the Aircraft.

In the event of failure to comply with proviso (i) or (ii) the limit of indemnity by the Insurer under this Section shall not exceed the amount of the legal liability if any that would have existed had the proviso been complied with.

Whenever the Aircraft mentioned in the Schedule hereto is being used for the purpose of flying instruction the liability of the Insurer in terms of this Section is not extended to either the instructor or the pilot undergoing such instruction neither of those being regarded as a passenger.

Documentary precautions

Effect of non-compliance

Flying instruction

2. Exclusions applicable to this Section only The Insurer shall not be liable for injury or loss: (i) sustained by any

(a) members of the household or family of the Insured;

(b) director, employee or partner of the Insured or member in

the Insured’s business whilst acting in the course of their employment with or duties for the Insured;

(c) member of the flight, cabin or other crew whilst engaged in

the operation of the Aircraft, or while such crew member is in any way engaged in his capacity as such;

(ii) while the total number of passengers being carried in the Aircraft

exceeds the declared maximum number of passenger seats stated in the Schedule hereto.

When carriage of infants clause – take out………….

3. Limit of indemnity applicable to this Section

The liability of the Insurer under this Section shall not exceed the amount stated in the Schedule hereto. The Insurer will in addition defray any legal costs and expenses incurred with its written consent in defending any action which may be brought against the Insured in respect of any claim for compensatory damages covered by this Section but should the amount paid or awarded in settlement of such claims exceed the limit of indemnity then the liability of the Insurer in respect of such legal costs and expenses shall be limited to such proportion of the said legal costs and expenses as the limit of indemnity bears to the amount paid for compensatory damages.

Employees and others

Number of passengers

Section IV

(A) General exclusions applicable to all Sections This Policy does not apply:

1. whilst the Aircraft is being used for any illegal purpose or for any purpose other than that stated in the Schedule hereto and as defined in the Definitions hereto;

2. whilst the Aircraft is being operated and/or used for reward in contravention

of any statutory licence and operating requirements pertaining to pilots, crew and operators, issued by the appropriate aviation authorities;

3. whilst the Aircraft is outside the geographical limits stated in the Schedule

hereto unless due to force majeure;

4. whilst the Aircraft is being piloted by any person other than as stated in the Schedule hereto except that the Aircraft may be operated on the ground by any person competent for that purpose and entitled by law to do so;

5. whilst the Aircraft is being transported by any means of conveyance

(excluding conveyance by its own motive power) except if it is then transported by other conveyance as the result of an accident giving rise to a claim under Section 1 of this policy;

6. whilst the Aircraft is landing or taking off or attempting to do so either at or

from a place which does not comply with the recommendations laid down by the manufacturer of the Aircraft or at an unlicenced landing ground at night, unless due to force majeure;

7. to liability assumed or rights waived by the Insured under any agreement

(other than passenger ticket baggage check issued under Section III hereof) except to the extent that such liability would have attached to the Insured in the absence of such agreement;

HOWEVER this exclusion shall not apply in the event of the Insured or the employees or agents of the Insured accepting conditions which exclude or limit liability in respect of loss of or damage to the Aircraft imposed by:

(i) repair, servicing or maintenance organisations (who undertake any

repairs to or maintenance of the Aircraft), (ii) hangar keepers and suppliers of fuel, (iii) any airport owner or airport licence holder;

8. to claims which are payable under any policy or policies except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this insurance not been effected;

Purpose and manner of use

Licences

Geographical Limits

Pilots

Transportation by Other conveyance

Landing and Take-off areas

Contractual liability

Non-contribution

9. (i) to loss of or destruction of or damage to any property whatsoever or

any loss or expense whatsoever resulting there from or any consequential loss;

(ii) in respect of any legal liability of whatsoever nature directly or

indirectly caused by or contributed by or arising from

(a) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof,

(b) ionising radiations or contamination by radioactivity from, or the

toxic, explosive or other hazardous properties of, any other radioactive source whatsoever.

10. to claims caused by:

(a) war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, material 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 labour 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 loss or damage resulting there from is accidental or intentional;

(e) Any malicious act or act of sabotage;

(f) confiscation, nationalisation, 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;

(g) 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.

Further this Policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy and entirely suitable for the operation of the Aircraft as prescribed by the manufacturers of the Aircraft (such safe return shall require that the Aircraft be parked free of duress with engines shut down).

11. This policy does not cover any claim, damage, injury, loss, cost, expense or liability

(whether in contract, tort, delict, negligence, product liability, misrepresentation, fraud or otherwise) of any nature whatsoever arising from or occasioned by or in consequence of (whether directly or indirectly and whether wholly or partly):

Radioactivity

War, hijacking and Other perils AVN48B

Date recognition

(a) the failure or inability of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party), accurately or completely to process, exchange or transfer year, date or time date or information in connection with;

- the change of year from 1999 to 2000, and/or - the change of date from 21 August 1999 to 22 August 1999, and/or - any other change of year, date or time; whether on or before or after such change of year, date or time.

(b) any implemented or attempted change or modification of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) in anticipation of or in response to any such change of year, date or time, or any advice given or services performed in connection with any such change or modification;

(c) any non-use or unavailability for use of any property or equipment of any

kind whatsoever resulting from any act, failure to act or decision of the Insured or of any third party related to any such change of year, date or time;

and any provision in this Policy concerning any duty of Insurers to investigate or defend claims shall not apply to any claims so excluded.

(B) Warranties applicable to all Sections The Insured Warrants:

1. compliance with all air transportation, air navigation and airworthiness orders and requirements issued by any competent authority affecting the safe operation of the aircraft and shall ensure that:

(a) the Aircraft is airworthy at the commencement of each flight; (b) all log books and other records in connection with the Aircraft which

are required by any official regulations in force from time to time shall be kept up to date and shall be produced to the Insurers or their agents on request;

(c) the employees and agents of the Insured comply with such orders

and requirements;

2. that should there be any change in the circumstances or nature of the risks which are the basis of this contract the Insured shall give immediate notice thereof to the Insurer and no claim arising subsequent to such change shall be recoverable hereunder unless such change has been expressly accepted by the Insurer.

3. that any flying instruction of whatsoever nature shall be effected by or under the

supervision of a duly qualified licensed instructor only.

Compliance with Air Navigation Orders etc.

Variation in risk

Instruction

(C) General conditions applicable to all Sections

1. The due observance and fulfilment of the terms, conditions and endorsements of this Policy shall be a condition precedent to any liability of the Insurer to make any payment under this Policy.

2. Immediate notice of any event likely to give rise to a claim under this Policy

shall be given to the Insurer. In all cases the Insured shall:

(a) furnish full particulars in writing of such event and forward immediately notice of any claim (by a third party or passenger) with any letters or documents relating thereto;

(b) give notice of any impending prosecution;

(c) render such further information and assistance as the Insurer may

reasonably require;

(d) not act in any way to the detriment of or prejudice to the interest of the Insurer.

The Insured shall not make any admission of liability or payment or offer or promise of payment without the written consent of the Insurer.

3. The Insurer shall be entitled (if it so elects) at any time for as long as it

desires to take absolute control of all negotiations, proceedings and litigation affecting the Insured and to deal with such matters as it deems fit. This includes the right to settle, defend or pursue any claim or prosecution in the name of the Insured.

4. Upon an indemnity being given or a payment being made by the Insurer

under this Policy it shall be subrogated to the rights and remedies of the Insured who shall co-operate with and do all things necessary to assist the Insurer to exercise such rights and remedies.

5. Notwithstanding the inclusion herein of more than one Insured whether by

endorsement or otherwise the total liability of the Insurer in respect of any or all Insureds shall not exceed the limit(s) of indemnity stated in the Schedule hereto.

6. If the Insured or his agent or employee shall make any claim knowing the

same to be false or fraudulent as regards amount or otherwise this Policy shall become void and all claims hereunder shall be forfeited.

7. The Policy may be cancelled by either the Insurer or the Insured giving 10

days notice in writing of such cancellation, If cancelled by the Insurer it will return a pro rata portion of the premium in respect of the unexpired period of the Policy. If cancelled by the Insured a return of premium shall be at the discretion of the Insurer. There will be no return of premium in respect of any Aircraft on which a loss exceeding the annual policy premium has been paid or is payable under this Policy.

8. This Policy shall not be assigned in whole or in part except with the consent

of the Insurer verified by endorsement hereon.

9. This Policy is not and the parties hereto expressly agree that it shall not be construed as a policy of marine insurance.

Due observance

Claims procedure

Control of proceedings

Subrogation

More than one insured

False and fraudulent claims

Cancellation

Assignment

Not marine insurance

10. Wording in the margins is purely for the reference purposes and shall not be

used in the interpretation of this Policy.

11. The Insured shall at all times use due diligence and do and concur in doing everything reasonably practicable to avoid or diminish any loss hereon.

12. In the event of an incident which may or does give rise to a claim or claims

under any Section of the Policy, the Insured shall comply with the obligations set out in General Condition 2. If after due and proper notice has been give by the Insured to the Insurer, the latter concludes and advises that the Insured is not entitled to any protection or indemnity under the Policy in its entirety or under any Section thereof, albeit for claims at that time or at any time in the future, all benefit under this Policy, under all Sections thereof, shall be forfeited by the Insured unless legal action for protection under the Policy is instituted within nine months of the date of the Insurers advising the Insured or its agent of the decision not to afford any benefit whatsoever to the Insured.

13. The premium under this Policy is payable on or before inception date or

renewal date as the case may be. The Insurer shall not be obliged to accept premium tendered to it after such date but may do so upon terms as it, in its sole discretion, may determine.

14. It is understood and agreed that in the event of a claim arising in terms of

this Policy the full annual premium less the amount of premium already paid, shall become due and payable forthwith. The full premium will become payable in respect of all aircraft insured hereunder

15. This insurance policy shall be governed by the law of the Republic of South

Africa whose courts shall have jurisdiction in any dispute arising hereunder.

16. This Policy will not indemnify the Insured in respect of fines, penalties, punitive, exemplary or vindictive damages.

Interpretation

Due diligence

Prescription

Premium payment

Full premium If loss

South African jurisdiction

Penalties

(D) Definitions

Definitions (f), (g), (h), and (i) constitute “Standard Uses” and do not include instruction, patrol (including but not limited to security, traffic, power line and anti-poaching patrol), fire fighting/spotting/control, all forms of racing including speed trials, record attempts, aerial or cloud seeding, crop dusting or spraying, hunting, shooting, herding, counting, capture, fish spotting, experimenting with or testing new parts (other than replaced standard parts) or new devices or new designs, sequence display or aerobatic flying, parachute dropping, vehicle tracking, aerial survey/filming or photography, under slung and/or winching operations, offshore servicing, any use which requires prior permission from competent authority and additionally any other use involving abnormal hazard but when cover is provided details of such uses(s) are stated under “Special Uses” in the Schedule hereto.

(a) “AIRCRAFT” shall mean the Aircraft specified in the Schedule hereto

together with its engine(s) and standard instruments and equipment including any extra equipment or accessories specifically mentioned in the Schedule.

(b) “ACCIDENT” means any one accident or series of accidents arising out of

one event.

(c) “UNIT” means a part or an assembly of parts (including any sub-assemblies) of the Aircraft which has been assigned an overhaul life as a part or an assembly. Nevertheless an engine replacement shall together constitute a single unit.

(d) “OVERHAUL LIFE” means the amount of the use or operational and/or

calendar time which according to the Airworthiness Authority, determines when overhaul or replacement of a unit is required.

(e) “OVERHAUL COST” means the costs of labour and materials which are or

would be incurred in overhaul or replacement (whichever is necessary) at the end of the overhaul life of the damaged or a similar unit.

(f) “PRIVATE, PLEASURE,” means the use for private and pleasure purposes

but not use for any business or profession or for the hire or reward.

(g) “BUSINESS/INDUSTRIAL AID” means the uses stated in “Private, Pleasure” and use for the purpose of the Insured’s business or profession but not use of the aircraft for hire or reward.

(h) “COMMERCIAL OR CHARTER” means the uses stated in “Private,

Pleasure” and “Business” and use for the carriage of the Insured of passengers, baggage accompanying passengers and cargo, all for hire or reward, in terms of a licence issued by a competent aviation authority.

(i) “RENTAL” means rental, lease, charter, or hire by the Insured to any

person, company, or organisation for “Private, Pleasure” and “Business” uses only where the operation of the Aircraft is not under the control of the Insured. Rental for any other purpose is not insured under this Policy unless specifically declared to the Insurer and stated under “SPECIAL USES” in the Schedule.

(j) “SALES AND DEMONSTRATION” means the situation arising whenever the Aircraft is made available for sale by one party to another which includes negotiations arising there from as well as the demonstration of the Aircraft or parts thereof on the ground or in the air whilst the Aircraft is actually flown. Sales and Demonstration is not insured under this Policy unless specifically declared to the Insurer and stated under “SPECIAL USES” in the Schedule hereto.

(k) “AB INITIO OR LICENCE REINSTATEMENT INSTRUCTION” means

practical or theoretical tuition to a person who is undergoing flying training on the Aircraft for the purpose of obtaining or reinstating a private or higher pilot’s licence.

(l) “CONVERSION TO TYPE INSTRUCTION” means use for instruction to a

pilot for the purpose of obtaining a type or category rating in respect of the Aircraft in compliance with legal regulations for type and category ratings. It does not include “AB INITIO INSTRUCTION”.

(m) “ADVANCED INSTRUCTION” means additional flying training for the

purpose of enabling a pilot to exercise rating privileges other than those already held by him in terms of an existing licence rating, or recurring training but does not include “Ab-initio”, “Reinstatement of licence” or “Conversion to type instruction”.

(n) “FLIGHT” means from the time the Aircraft moves forward in taking off or

attempting to take off, whilst in the air, and until the Aircraft completes its landing run. Rotary wing aircraft shall be deemed to be in flight when the rotors are in motion as a result of engine power, the momentum generated therefrom, or autorotation.

(o) “TAXYING” means movement of the Aircraft under its own power other than

flight as defined. Taxiing shall not be deemed to cease merely by reason of a temporary halting of the Aircraft.

(p) “GROUND” means while the Aircraft is not in flight or taxiing as defined.

(E) ENDORSEMENTS Pilot’s Indemnity Clause It is hereby declared and agreed that the indemnity granted under Section II – Legal Liability to Third Parties (other than Passengers) and Section III – Legal Liability to Passengers – if incorporated herein shall extend to include the legal liability of any pilot (as described in the Schedule hereto) who flies the Aircraft with the express knowledge and consent of the Insured in respect of injury or damage as defined in the relative Section but not so as to increase the liability of the Insurer beyond the amount which it would have been liable to pay in respect of such injury or damage if liability had devolved upon the Insured; Provided always that 1. at the time of any accident giving rise to a claim under this extension the said pilot: (a) is not entitled to indemnity under any other policy;

(b) shall as though he were the Insured observe, fulfil and be subject to all warranties, terms, exclusions, deletions, definitions, conditions and clauses contained in the Policy so far as they can apply;

2. the Insurer shall not be liable under this extension in respect of claims by the Insured; 3. for the purpose of this extension the word “Insured” wherever it appears in the Exclusions appearing

in Sections II and III shall be understood to mean (a) the Insured named in the Schedule hereto and/or (b) any pilot as aforesaid in respect of whom this extension is operative. Unlicensed Landing Grounds Suitability Clause It is hereby declared and agreed that the landing on and taking off of the Aircraft by day from landing grounds other than duly licensed airports is covered under this Policy subject to each such landing ground being surveyed from the ground or from the air by the Insured and/or pilot immediately prior to landing or taking off as the case may be. In the event of a claim being made under this Policy arising out of the use of any such landing ground the onus of proving its suitability as such shall rest entirely on the Insured. Airfreight of Spares In the event of the Insured Aircraft sustaining damage constituting a valid claim in terms of Section I of this Policy and necessitating the importation and/or exportation of aircraft spare parts and/or components the Insurer shall be liable for the cost of transportation by air of such spare parts and/or components up to ten per cent (10%) of the Sum Insured of such damaged Aircraft subject to a maximum of R50,000.00 or the US$ equivalent where applicable any one aircraft.

No Claim Bonus at Inception A No Claim Bonus discount, calculated at the rate stated in the Schedule, will be allowed at inception. It is agreed that in the event of a claim being reported in terms of this Policy then the No Claim Bonus discount allowed at inception shall be reversed and become due and payable to the insurer immediately.

Voluntary Air Transport Squadron Flying / Police Airwing (Applicable to Section I only) The cover provided by Section I of this Policy includes the use of the Aircraft for Voluntary Air Transport Squadron duties authorised on the order of and under the general control of the Chief of the Air Force/Commissioner of Police of the Republic of South Africa. It is further agreed that such authorised duties are: 1. flights at training courses 2. ad hoc tasks flown in support of or at the request of the Civil Aviation Authority, South

African National Defence Force, South African Police Services and National Sea Rescue Institute of South Africa

subject to all such duties being carried out in compliance with all Civil Aviation Regulations notwithstanding any Regulation or section of the Aviation Act No. 74 of 1962 which purports or attempts to purport to exclude compliance therewith. This Policy does not cover loss or damage to the above-mentioned Aircraft as a result of or in the course of operational, hostile or malicious action of or against insurgents or other persons. Hail Damage It is hereby agreed and accepted that in the event of any Aircraft (Insured in terms of this Policy) having been damaged due to hail strike and not being fully and completely repaired and reinstated in its condition immediately prior to the said hail strike at the time of the inception of the risk under this Policy all and any further hail damage of whatever nature sustained to the Aircraft whilst on the ground, is specifically excluded. The Insurer’s obligation to indemnify the Insured in respect of such further hail damage shall only come into being in the event of the Insured discharging its onus to satisfy the Insurer that the hail damage caused prior to the inception of the risk, has been fully and completely repaired and the Aircraft reinstated. Contingent Pilots Clause (Piston Engine Fixed Wing Aircraft only) It is hereby declared and agreed that the Permitted Pilot and Purpose of Use provisions in this Policy are extended to include the following: 1. Any type-rated commercially licensed pilot solely for the purpose of collection and/or

delivery and/or test flights in connection with overhaul, maintenance or repair of the Aircraft.

2. Any type-rated privately licensed pilot solely for the purpose of collection and/or delivery

and/or test flights required in connection with overhaul, maintenance or repair of the Aircraft provided that the pilot has been specifically approved by the Civil Aviation Authority for this purpose.

Aggravation of Injury / Illness / Medical Malpractice Exclusion

Notwithstanding anything contained herein to the contrary, it is hereby understood and agreed that this Policy shall exclude coverage in respect of the Insured’s liability for medical malpractice or aggravation of existing injuries or illness of any passenger carried by the Insured and/or any insured Pilot as the result of such passenger entering into, alighting from or flying in the Aircraft.

WAR ENDORSEMENT (Applicable to Section I only)

Extortion and Hi-jack Expenses Limit of Policy:

90% of R any one loss and in all (WARRANTED REMAINING 10% UNINSURED)

SECTION ONE: LOSS OF OR DAMAGE TO AIRCRAFT

Subject to the terms, conditions and limitations set out below, this Policy covers loss of or damage to the Aircraft stated in the Schedule against claims excluded from the Assured’s Hull ‘‘All Risks’’ Policy as 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) Strikes, riots, civil commotions or labour disturbances.

(c) Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting there from is accidental or intentional.

(d) Any malicious act or act of sabotage.

(e) Confiscation, nationalisation, 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.

(f) Hi-jacking 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 Assured. For the purpose of this paragraph (f) only, an aircraft is considered to be in flight at any time from the moment when all its external doors are closed following embarkation until the moment when any such door is opened for disembarkation or when the aircraft is in motion. A rotor-wing aircraft shall be deemed to be in flight when the rotors are in motion as a result of engine power, the momentum generated there from, or autorotation.

Furthermore this Policy covers claims excluded from the Hull ‘‘All Risks’’ Policy from occurrences whilst the Aircraft is outside the control of the Assured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Assured on the safe return of the Aircraft to the Assured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress).

SECTION TWO: EXTORTION AND HI-JACK EXPENSES

1. This Policy will also indemnify the Assured subject to the terms, conditions, exclusions and limitations set out below, and up to the limit stated in the Schedule, for 90% of any payment properly made in respect of:

(a) threats against any Aircraft stated in the Schedule or its passengers or crew made during the currency of this Policy.

(b) extra expenses necessarily incurred following confiscation, etcetera (as Section One clause (e)) or hi-jacking, etcetera (as Section One clause (f)) of any Aircraft stated in the Schedule.

2. No cover will be provided under this Section of the Policy in any territory where such insurance is not lawful, and the Assured is at all times responsible for ensuring that no arrangements of any kind are made which are not permitted by the proper authorities.

SECTION THREE: GENERAL EXCLUSIONS

This Policy excludes loss, damage or expense caused by one or any combinations of any of the following:

(a) war (whether there be a declaration of war or not) between any of the following States: the United Kingdom, the United States of America, France, the Russian Federation, the People’s Republic of China; nevertheless, if any Aircraft is in the air when an outbreak of such war occurs, this exclusion shall not apply in respect of such Aircraft until the said Aircraft has completed its first landing thereafter;

(b) confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the authority of the Government(s) stated in the Schedule, or any public or local authority under its jurisdiction;

(c) the emission, discharge, release or escape of any chemical, biological or biochemical materials or the threat of same but this exclusion shall not apply;

(i) if such materials are used or threatened to be used solely and directly in:

1. the Hi-jacking, unlawful seizure or wrongful exercise of control of an Aircraft in flight and then only in respect of loss of or damage to such Aircraft the subject of a valid claim under clause (f) Section One above; or

2. any threat against an Aircraft stated in the Schedule or its passengers or crew and then only in respect of payments as are insured under Section Two above;

(ii) other than as provided for in sub-paragraph 1 above, to loss of or damage to an Aircraft if the use of such materials is hostile and originates solely and directly;

1. on board such Aircraft, whether it is on the ground or in the air.

or

2. external to such Aircraft and causes physical damage to the Aircraft whilst the Aircraft’s wheels are not in contact with the ground.

Any emission, discharge, release or escape originating external to the Aircraft that causes damage to the Aircraft as a result of contamination without other physical damage to the Aircraft exterior is not covered by this Policy.

(d) any debt, failure to provide bond or security or any other financial cause under court order or otherwise;

(e) the repossession or attempted repossession of the Aircraft either by any title holder, or arising out of any contractual agreement to which any Assured protected under this Policy may be party;

(f) delay, loss of use, or except as specifically provided in Section Two any other consequential loss; whether following upon loss of or damage to the Aircraft or otherwise.

(g) any use, hostile or otherwise, of radioactive contamination or matter but this exclusion shall not apply to loss of or damage to an Aircraft if such use is hostile and originates solely and directly;

(i) on board such Aircraft, whether it is on the ground or in the air, or

(ii) external to such Aircraft and causes physical damage to the Aircraft whilst the Aircraft’s wheels are no longer in contact with the ground

Any such use originating external to the Aircraft that causes damage to the Aircraft as a result of contamination without other physical damage to the Aircraft exterior is not covered by this Policy.

(h) any use, hostile or otherwise, of an electromagnetic pulse but this exclusion shall not apply to loss of or damage to an Aircraft if such use originates solely and directly on board such Aircraft, whether it is on the ground or in the air.

(i) any detonation, hostile or otherwise, of any device employing atomic or nuclear fission and/or fusion or other like reaction, and notwithstanding (g) and (h) above, any radioactive contamination and electromagnetic pulse resulting directly from such detonation is also excluded by this Policy.

SECTION FOUR: GENERAL CONDITIONS

1. This Policy is subject to the same warranties, terms and conditions (except as regards the premium, the obligations to investigate and defend, the renewal agreement (if any), the amount of deductible or self insurance provision where applicable AND EXCEPT AS OTHERWISE PROVIDED HEREIN) as are contained in or may be added to the Assured’s Hull ‘‘All Risks’’ Policy.

2. Should there be any Material Change in the nature or area of the Assured’s operations, the Assured shall give immediate notice of such Change to the Underwriters; no claim arising subsequent to a Material Change over which the Assured had control shall be recoverable hereunder unless such change has been accepted by the Underwriters.

‘‘Material Change’’ shall be understood to mean any change in the operation of the Assured, which might reasonably be regarded by the Underwriters as increasing their risk in degree or frequency, or reducing possibilities of recovery or subrogation.

3. The due observance and fulfilment of the terms, provisions, conditions and endorsements of this Policy shall be conditions precedent to any liability of the Underwriters to make any payment under this Policy: in particular the Assured should use all reasonable efforts to ensure that he complies and continues to comply with the laws (local or otherwise) of any country within whose jurisdiction the Aircraft may be, and to obtain all permits necessary for the lawful operation of the Aircraft.

4. Subject always to the provisions of Section Five, and the Schedule, Underwriters hereon agree to follow the Hull ‘‘All Risks’’ Policy in respect of Breach of Warranty Cover, Hold Harmless Agreements and Waivers of Subrogation.

SECTION FIVE: CANCELLATION REVISION AND AUTOMATIC TERMINATION

Amendment of Terms or Cancellation

1. a) Underwriters may give notice, effective on the expiry of 7 days from midnight G.M.T. on the day on which notice is issued, to review the rate of premium and/or the geographical limits. In the event of the review of the rate of premium and/or geographical limits not being accepted by the Assured then at the expiry of the said 7 days, this Policy shall become cancelled at that date.

Automatic Review of Terms or Cancellation

b) Notwithstanding 1(a) above, this Policy is subject to automatic review by Underwriters of the rate of premium and/or conditions and/or geographical limits effective on the expiry of 7 days from the time of any hostile detonation of any device including any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the insured Aircraft may be directly affected. In the event of the review of the rate of premium and/or conditions and/or geographical limits not being accepted by the Assured then at the expiry of the said 7 days, this Policy shall become cancelled at that date.

Cancellation by Notice c) This Policy may be cancelled by the Assured or Underwriters giving notice not less than 7 days prior to the end of each period of 3 months from inception.

Automatic Termination 2. Whether or not such notice of cancellation has been given this Insurance shall TERMINATE AUTOMATICALLY

Upon the outbreak of war (whether there be a declaration of war or not) between any of the following States, namely, the United Kingdom, the United States of America, France, the Russian Federation, the People’s Republic of China

PROVIDED THAT if the Aircraft is in the air when such outbreak of war occurs then this insurance, subject to its terms and conditions and provided not otherwise cancelled, terminated or suspended, will be continued in respect of such Aircraft until the said Aircraft has completed its first landing thereafter

04/06 LSW555D

HIRE PURCHASE/LEASE AGREEMENT

ENDORSEMENT

It is hereby declared and agreed that BANK (hereinafter referred to as "the Owners"). are the Owners of the aircraft described in the schedule hereto and that the said aircraft is the subject of a Hire Purchase/Lease Agreement made between the Owners of the one part and the Insured of the other part. It is further declared and agreed that the said Owners are interested in any monies which but for this endorsement, would be payable to the Insured under the policy in respect of the loss of or damage to the said aircraft (which loss or damage is not made good by repair, reinstatement or replacement) and such monies shall be paid to the said Owners as long as they are the Owners or regarded as the Owners under the Hire Purchase/Lease Agreement of the aircraft and their receipt shall be full and final discharge to the Company in respect of such loss or damage. Save as by this endorsement expressly agreed nothing herein shall modify or affect the rights or liabilities of the Insured or the Insurer respectively under or in connection with the policy or any condition or terms thereof. BREACH OF WARRANTY ENDORSEMENT It is hereby declared and agreed that the aircraft AIRCRAFT MODEL Registration marks

REGISTRATION NUMBER encumbered by a lien in the amount of 90% of R AMOUNT (EXCL

VAT). The lien is held by BANK hereinafter called "the Owners".

In consequence of the foregoing an additional premium of 0.00 is due to Insurers.

IT IS FURTHER UNDERSTOOD AND AGREED THAT:

1. The insurance afforded by the policy shall not be invalidated as regard the interest of the

Owners by any act or neglect of the Insured except that any change in title or ownership of

the aircraft, conversion, embezzlement or secretion by the Insured in possession of the

aircraft are not covered hereunder.

PROVIDED HOWEVER THAT:

(a) If the Insured fails on demand of the Insurer to pay any premium due

under this Policy, the Owners shall pay such premium; and

(b) The Owners shall notify the Insurer of any increase of hazard which

comes to the Owners' attention and if not permitted by this policy, it shall

be endorsed thereon, the Owners agreeing to pay any additional

required premium if the Insured shall fail to do so on demand of the

Insurer.

It is, however, further understood and agreed by the parties concerned that the protection

afforded to the Owners by the terms of this endorsement is limited to the perils covered

under the policy and for which a specific premium charge has been made.

2. If the Insured fails to render proof of loss within the time granted in the policy conditions, the

Owners shall do so within 60 days thereafter, in form and manner provided by the policy and

further shall be subject to the provisions of the policy relating to appraisal and time of

payment and of bringing suit.

3. Whenever the Insurer shall be liable to the Owners for any sum for loss or damage under this

policy and the Insurer shall claim that as to the Insured, no liability therefore existed, their

liability under the terms of this endorsement shall not in any event exceed the amount of the

lien set forth above, less the amount of all matured instalments and less unearned interests

or carrying charges and unearned financed insurance premium if any.

4. The Insurer reserves the right to cancel this policy at any time as provided by its terms but in

such case notification shall be given to the Owners when not less than 10 days thereafter

such cancellation shall be effective as to the interest of said Owners therein and the Insurer

shall have the right, on like notice, to cancel this endorsement.

5. Upon payment of any sum to the Owners as provided here under the Insurer shall to the

extent of such payment be thereupon legally subrogated to all the rights of the Owners under

all securities held as collateral to the debt and the Owners shall assign and transfer to the

Insurer all instruments of security pertaining to the aircraft; but no subrogation shall impair the

right of the Owners to recover the full amount of their claim.

EXTENDED COVERAGE ENDORSEMENT (Aviation Liabilities)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of NIL, it is hereby understood and agreed that with effect from inception, all sub-paragraphs other than (a) and (b) of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-

paragraph (a) of Clause AVN 48B,

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of the aircraft.

3. LIMIT OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be the applicable policy limit any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto. To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:

a) To passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

b) For cargo and mail while it is on board the aircraft of any aircraft operator to

whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances.

i. All cover

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

ii. Any cover extended in respect of the deletion of sub-paragraph (a) of

Clause AVN 48B -upon the hostile detonation of any weapon of war employing atomic and nuclear fission and/or fusion or other like reaction or radioactive force or matter whatsoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

iii. All cover in respect of any of the Insured Aircraft requisitioned by either

title or use

-upon such requisition PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

a) Review of Premium and/or Geographical Limits (7 days)

Insurers may give notice to review premium and/or geographical limits – such notice to become effective on the expiry of seven days from 23.59 hours Local time on the day on which notice is given.

b) Limited Cancellation (48 hours)

Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clauses AVN 48B – such notice to become effective on the expiry of forty-eight hours from 23.59 hours Local time on the day on which notice is given.

c) Cancellation (7 days)

The cover provided by this Endorsement may be cancelled by either the Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours Local time on the day on which such notice is given.

d) Notices

All notices referred to herein shall be in writing.

POLICY CLAUSES

ADDITIONAL INSURED : SECTIONS II & III ONLY It is hereby declared and agreed that NONE are noted as an Additional Insured on this Policy each for their respective rights and interests. BREACH OF AIR NAVIGATION REGULATIONS CLAUSE It is hereby understood and agreed that coverage afforded under this policy remains in full force and effect in the event of any of the Insured's servants and/or pilots of the aircraft (provided not the named Insured) committing a Breach of Air Navigation Directions and/or Regulations and/or conditions which would otherwise make this policy void. PROVIDED ALWAYS THAT the Insured and/or the directors and/or the management of the Insured has no prior knowledge of the circumstances in which the breach has been committed and that the agent or servants or pilot has acted contrary to express instructions laid down by the insured. The onus of proof that the requirements of this endorsement have been met, shall rest solely upon the Insured. Nothing in this Clause shall extend this Policy to indemnify the individual causing any such breach.

AGREED VALUE The amount shown in the Policy Schedule, as the “Total Value” shall be deemed to be the value agreed between the Insured and the Insurer. In each and every event giving rise to a claim the insurer shall have the sole discretion to pay the insured the total value of the aircraft as stated in the policy less any applicable excess, irrespective of whether the aircraft is repairable or a total / constructive loss”

UNAUTHORISED USE This Policy includes cover for loss, damage and liability of the Insured as defined herein whilst the insured aircraft is used in a place and/or in a manner and/or by a person not permitted by this Policy, provided such use was not authorised by the Insured and provided that the Insured takes reasonable precautions to prevent such unauthorised use. Nothing in this clause shall extend this policy to indemnify an unauthorised person and/or organisation in respect of any claims for which they may be liable.

CROSS LIABILITIES The parties comprising the Insured shall each be considered as a separate and distinct unit and the words "The Insured" shall be considered as applying to each party and in the same manner as if a separate Policy had been issued to each of the parties? It is expressly understood and agreed that the Insurer will not be liable under this policy for any claim, which, but for this extension, would otherwise fall under any other Insurance. Nothing contained herein shall increase the liability of the Insurer beyond the limit(s) stated in the Schedule. In the event of more than one insured being named in the policy and should an incident occur which might give rise to a claim under any section of the policy, it is agreed that should the insured calling for indemnity be in breach of any term, condition, warranty or stipulation contained in the said policy, such insured shall not be entitled to any form of indemnity under the policy in its entirety. It is furthermore agreed that in the event of the insurer indemnifying an insured under any of the sections comprising the policy, in such event, the insurer shall be subrogated to all rights in terms of all monies paid to or on behalf of the insured claiming indemnity as against the insured who acted in breach of the aforesaid terms, conditions, warranties or stipulations.

Take out if only one insured name

EXTENSION OF INDEMNITY REGARDING LEGAL LIABILITY TO EMPLOYEES Notwithstanding anything contained herein to the contrary it is hereby declared and agreed that if at any time during the period of this insurance any employee of the Insured shall sustain bodily injury (fatal or non fatal) whilst travelling as a passenger in the aircraft described in the schedule hereto (including mounting into or dismounting from that aircraft) in the course of his employment by the Insured and if the Insured shall become legally liable to pay and shall pay any compensation (including costs awarded against the Insured) in respect of such injury, the Insurer - subject otherwise to all terms, conditions of this insurance contained herein or endorsed hereon will indemnify the Insured in respect of all sums for which the Insured shall be so liable up to but not exceeding the limits of indemnity as described in the schedule hereto PROVIDED ALWAYS THAT 1. the indemnity provided by this extension shall not apply if the liability of the Insured arises

under any law requiring compensation to be paid for injury to workmen. 2. the indemnity provided by this extension shall not apply to claims payable under any

other policy or policies including any Employers Liability coverage except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this insurance not been effected.

DEBIT ORDER PAYMENTS-NON PAYMENT CANCELLATION Notwithstanding anything contained to the contrary in this Policy, if any amount due in terms of any Debit Order in respect of this Policy is not paid within 15 (fifteen) days after the first day of the month (or any other due date agreed in writing), then this policy shall be cancelled with effect from the last day of the previous month without further notice to the Insured. Take out if Quarterly or Annual policy… EXCESS (Material Damage only – Hull) R AMOUNT each and every loss DEDUCTIBLE BUY DOWN The Deductible in respect of this policy has been Insured Down as follows:- R0.00 Down to R 0.00 . The Total Liability of Insurers in respect of all claims occurring during the period of this policy shall not exceed the Aggregate of R0.00 in All. INGESTION CLAUSE Ingestion damage by stones, grit, dust, sand, ice and the like of which result in progressive engine deterioration will be regarded as “wear and tear ad deterioration” and excluded; but ingestion causing sudden damage attributable to a single recorded incident is covered, each occurrence, each engine to be a separate claim unless such damage is caused by a forced or crash landing. The deductible to be borne by the Insured in respect of each claim shall be as applicable in the case of flight and taxy claims. LEGAL LIABILITY TO AND/OR OF INSTRUCTORS/STUDENT PILOTS It is hereby declared and agreed that coverage as afforded by Section III of this policy is extended to include legal liability of any qualified instructor towards licensed student pilots and/or legal liability of any licensed student pilot toward qualified licensed instructors. The Insurers limit of liability in respect of this extension shall not exceed R500 000-00 each aircraft. Nothing contained herein shall increase the liability of the Insurer beyond the limit(s) stated in the Schedule. NTCA CATEGORY AIRCRAFT Warranted all aircraft / engine / propeller maintenance and repairs are to be carried out under the auspices of AN APPROVED PERSON (AP) and as per the manufacturer’s recommendations. It is further warranted that all NTCA type aircraft will at all times be operated with a valid AUTHORITY TO FLY document issued by SA CAA. Take out if ZS- aircraft, always in if ZU……

LIABILITY TO PARACHUTISTS It is hereby declared and agreed that the indemnity granted under this contract shall NOT apply to nor include (a) liability to parachutists arising from any cause whatsoever (b) liability arising out of an accident or incident caused or contributed to by or through or in connection

with any parachutist(s). PRO-RATA CANCELLATION CLAUSE It is hereby declared and agreed that in the event of the aircraft being sold and no claim having occurred or costs being incurred by Insurers, the Insured will be entitled to a pro-rata refund premium subject to the Insurers retaining a minimum of 20% of the annual premium.

ASBESTOS EXCLUSION

It is hereby understood and agreed that this contract shall not apply to, and does not cover, any actual or alleged liability whatsoever for any claims in respect of loss or losses directly or indirectly caused by or arising out of, resulting from , in consequence of in any way involving, or to the extent contributed to by, the hazardous nature of asbestos in whatever form or quantity.

SEARCH AND RESCUE This policy extends to indemnify the Insured in respect of expenses incurred in rescue work (including the costs of search) necessitated by an accident during the policy period to the Insured aircraft whilst within the Geographical Limits as stated in the Schedule. The words “accident” as used herein shall mean any occurrence which prevents the completion of a flight from point of origin to destination and involves either a forced landing or crash away from the premises of any recognised airfield and which necessitates searching for the aircraft or rescuing any persons involved in such forced landing or crash and returning them to the nearest point of hospitalisation (if necessary) or the nearest point of public transportation. The liability of the Insurer under this extension is limited to: R50,000.00 in the aggregate. Nothing contained herein shall increase the liability of the Insurer beyond the limit(s) stated in the Schedule.

FORCED LANDING CLAUSE

Insurers hereon agree that in the event of an insured Aircraft making a forced landing in any place where subsequent safe take-off is impossible they will pay all reasonable costs, expenses or expenditure for the removal of the Aircraft to the nearest suitable take-off area provided always that Insurers’ liability for such costs, expenses or expenditure, and for any loss of or damage to the Aircraft, shall not exceed the value of the Aircraft as declared in the Policy.

AB INITIO OR LICENCE REINSTATEMENT INSTRUCTION Practical or Theoretical tuition to a person who is undergoing flying training on the Aircraft for the purpose of obtaining or reinstating a private or higher pilot’s license.

EXTRA CLAUSES:

SEVERAL LIABILITY Several Liability Notice LSW 1001 08/94 (Insurance): The subscribing Insurers obligations under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing Insurers are not responsible for the subscriptions of any co-subscribing Insurer who for any reason does not satisfy all or part of its obligations. EMPLOYEES AS PASSENGERS OF CREW EXTENSION Notwithstanding anything contained herein to the contrary, Section III of AVN1C is extended to cover Liability to Employees of the Insured whist carried as Passengers or Crew in the Insured Aircraft, but excluding any liability which the insured may become liable under any Workmen’s Compensation Act(s) or similar legislation. AIRCREW INDEMNITY CLAUSE (LIABILITIES) It is hereby declared and agreed that the indemnity granted under section II Legal Liabilities to Third Parties (other than passengers) and section III – Legal Liability to Passengers – if incorporated herein Shall extend to include the Legal Liability of any aircrew (s described in part 4 of the schedule Hereto) who flies the aircraft with the express knowledge and consent of the Insured beyond the amount which they would have been liable to pay in respect of such injury or damage of liability have develop upon the Insured. Provided always that:- 1. At the time of any accident giving rise to a acclaim under this clause the said pilot

a) Is not entitled to indemnity under any other policy b) Shall as though he/she with the insured observe,,,, fulfil and be subject to all warranties, terms

conditions, exclusion, deletions, definitions, conditions and clauses contained in the policy as far as they can apply.

2. The Insured shall not be liable under this extension in respect of claims by the Insured 3. For the purpose of this extension the word “Insured” wherever it appears in the exclusions appearing

in section II and III shall be understood to mean: a) The insured named in part I of the schedule hereto and/or b) Any aircrew as aforesaid in respect of whom this extension is operative.

CARRIAGE OF INFANTS The Insured may exceed the Declared Maximum Passenger Seating in any Aircraft covered hereunder by virtue of the carriage of infants, subject to compliance with the relevant provisions of the Air Navigation Regulations or any other relevant Regulations, Rules or Enactment

TRESPASSERS COSTS CLAUSE Insurers agree to settle reasonable claims for loss of or damage to crops and/or other property, caused by trespassers, following a crash or forced landing of the Aircraft, if such loss or damage is not recoverable from the trespassers. AVN 76 – SUPPLEMENTARY PAYMENTS CLAUSE It is understood and agreed that this Policy is extended to cover as more fully set forth under those paragraph(s) identified below. It is expressly understood that no cover is provided under those paragraphs of this Clause which have not been identified below. The Insurers agree to indemnify the Insured for (a) any reasonable expenses incurred for the purpose of search and rescue operations for an Aircraft

insured hereunder determined to be missing and unreported after the computed maximum endurance of the flight has been exceeded;

(b) any reasonable expenses incurred for the purpose of runway foaming to prevent or mitigate possible

loss or damage because of malfunction or suspected malfunction of an Aircraft insured hereunder; (c) any reasonable expenses incurred for the purpose of attempted or actual raising, removal, disposal or

destruction of the wreck of an Aircraft insured hereunder and the contents thereof; (d) any reasonable expenses which the Insured may be called upon to pay in respect of any public inquiry

or inquiry by the Civil Aviation Authority or any other relevant authority into an Accident involving an Aircraft insured hereunder. Coverage is provided under paragraphs above. Provided always that Insurers' liability shall not exceed in the aggregate over all paragraphs insured.

HOT AND HUNG START CLAUSE It is understood and agreed that coverage is extended to include damage to the aircraft engine(s) occurring as a result of Hot and/or Hung Starts subject to: a: the damage resulting from a single recorded incident b: a technical log entry being made at time of the incident c: the incident being reported immediately to a licensed engineer and prior to any restart of attempt

d: the reporting of an incident likely to give rise to a claim under the policy to Insurers in accordance

with General Condition (B) 3 herein

e: application of normal policy deductibles and betterment where applicable For the purpose of this endorsement it is understood and agreed that: A hot start occurs when, during the start phase, the temperature in the hot section of an engine is allowed to exceed that specified in the operators and/or engine manufacturers manual. A hung start occurs when, during the start phase, an engine fails to self sustain in the time specified in the operators and/or manufacturers manual, resulting in the temperature in the hot section of the engine exceeding that specified in said manual

THE STATE PRESIDENT’S AIR RACE AND/OR RALLIES Notwithstanding the exclusion relating to racing and/or rallies in the underlying Policy it is agreed to include participation in the State President’s Air Race and/or Rallies subject to the following conditions 1. Cover in respect of Section II of the Policy (Legal Liability to Third Parties) is restricted to a limit of

R100 000 (One Hundred Thousand Rand) whilst the insured aircraft is being used in the said race or rally

2. Cover in respect of Section III of the Policy (Legal Liability to Passengers) shall not apply whilst the insured aircraft is being used in the said race or rally

3. All deductibles are increased to 10% (Ten Per Cent) of the agreed Value of the insured aircraft

subject to a minimum of R10 000 (Ten Thousand Rand) including Total Loss, Constructive Total Loss and Arranged Total Loss

4. This cover to apply from arrival of the insured aircraft at the aerodrome prior to the start of the race or rally and to remain in force until departure from the aerodrome after the end of the race or rally

It is further agreed and understood that any Breach of Air Navigation Regulations by either the Insured or any pilot flying the aircraft will invalidate any claim of whatever kind under any Section of the Policy. INSURED HAS A POLICY OF INSURANCE - "50/50" CLAUSE (AVS 103 or its equivalent) If, in addition to this Policy of Insurance which, inter alia, covers the risks excluded by AVN48B/the Common North American Airline War Exclusion Clause, the Insured has another policy of insurance in full force and effect that has a "Hull All Risks" and/or a "Liability All Risks" policy which, inter alia, contains the War Hi-Jacking and Other Perils Exclusion Clause (AVN 48B) and/or the Common North American Airline War Exclusion Clause, the insurer agrees that in the event of an Occurrence involving loss or damage to an aircraft on the schedule of aircraft forming part of this Policy of Insurance and where agreement is reached between the "Hull All Risks" and/or the "Liability All Risks" insurers and the Administrator that the Insured has a valid claim under one or the other policy where nevertheless it cannot be resolved within twentyone (21) days from the date of the Occurrence as to which policy is liable, each of the aforementioned groups of insurers agree, without prejudice to their liability, to advance to the insured fifty percent (50%) of such amount as may be mutually agreed between them until such time as final settlement of the claim is agreed, provided that: A. the "Hull All Risks" and/or the "Liability All Risks" policies, and this Policy of Insurance are identically

endorsed with this provisional claims settlement clause; B. within twelve (12) months of the advance being made all insurers specified above in this paragraph

agree to refer the matter to arbitration in the United States in accordance with the Statutory provision for arbitration for the time being in force;

C. once the arbitration decision has been conveyed to the parties concerned, the "All Risks" insurers or

the Insurer, as the case may be, shall repay the amount advanced by the other group of insurers together with interest for the period concerned, which is to be calculated using the London Clearing Banks’ Base Rate;

D. if the "Hull All Risks" and/or the "Liability All Risks" policies and this Policy of Insurance contain

differing amounts payable, the advance will not exceed the lesser of the amounts involved. In the event of Co-insurance or risks involving uninsured portion(s), the appropriate adjustment will be made.

OUT OF NOTIFIED HOURS CLAUSE The coverage provided by the Policy shall not be invalidated as a result of the use, by the Insured, of certain airfields and/or airports out of the notified hours, subject to prior permission having been granted by the appropriate owner and/or operator of such airfield and/or airport AVN 80 – MEDICAL AND RELATED EXPENSES INCLUSION CLAUSE It is understood and agreed that this Policy is extended to pay all reasonable expenses incurred within one year from the date of accident for necessary medical, surgical, ambulance, hospital, professional nursing, repatriation and funeral expenses to or for each person who sustains bodily injury, sickness or disease, caused by accident whilst in, entering or alighting from the Aircraft if the Aircraft is being used by the Insured or with his permission. As soon as practicable, the injured person or someone on his behalf shall give to the Insurers or any of their representatives written proof of claim, under oath if required, and shall, after each request from the Insurers, execute authorisation to enable the Insurers to obtain medical reports and copies of records. The injured person shall submit to physical examination by physicians selected by the Insurers when and as often as the Insurers may reasonably require. The insurance afforded by this coverage shall be subject to a Policy limit of and shall be excess insurance over any other valid and collectible Insurance applicable thereto. The coverage afforded by this Clause extends to the pilot(s) and operational crew of the Aircraft. ADDITIONS AND DELETIONS (COMBINED) 1. The insurance afforded by this Policy is automatically extended to include at pro rata additional premium further Aircraft added during the currency of this Policy provided such

Aircraft are owned or operated by the Insured and are of the same type and value as Aircraft already covered hereunder and of no greater seating capacity.

2. The inclusion of additional Aircraft of other types or different values or greater seating capacity shall be subject to special agreement and rating by Insurers prior to attachment. 3. Under the Aircraft loss or physical damage Section of this Policy Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro

rata return of premium provided no claim has arisen and become payable in respect of such Aircraft under the Aircraft loss or physical damage Section of this Policy and that this Policy is not cancelled by virtue of such deletion.

4. Under the liability Section(s) of this Policy Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium. Provided always that

(i) Notwithstanding the foregoing provisions for additions and deletions the premium in

respect of each separate period of Flight risk insurance on any Aircraft covered during the currency of this Policy shall in no case be less than fifteen days' pro rata premium.

(ii) In the event of a claim arising in respect of any Aircraft added hereto being settled on a total loss basis the full twelve months' Aircraft loss or physical damage premium shall be paid hereunder in respect of such Aircraft.

(iii) Notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1 and 3 respectively shall be given to the Insurers or their representatives in writing within ten days of attachment or deletion. AVN 19A

KILN GEOGRAPHIC AREAS EXCLUSION CLAUSE (01/01/2005) 1. This policy excludes loss, damage or expense occurring within any of the following countries and

regions: (a) Algeria, Cabinda, Burundi, Central African Republic, Congo, Democratic Republic of Congo,

Eritrea, Ethiopia, Ivory Coast, Liberia, Nigeria, Sierra Leone, Somalia, Sudan. (b) Colombia, Ecuador, Peru. (c) Afghanistan, Checheno / Ingushskaya, Nagorno-Karabakh, Pakistan, Yemen, Jammu &

Kashmir, Nepal. (d) Sri Lanka. (e) Iran, Iraq, Syria. (f) Bosnia, Kosovo. 2. However coverage is granted for the over flight of any excluded country where the flight is

within an internationally recognized air corridor and is performed in accordance with I.C.A.O. recommendations.

3. In addition to those countries listed above coverage is excluded for any flight into any country where such operation of aircraft is in breach of United Nations sanctions.

4. Any excluded country may be covered by underwriters at terms to be agreed Slip Leader only prior to

flight. 01/05 LSW617E REINSURANCE UNDERWRITING AND CLAIMS CONTROL CLAUSE. 1. This Policy is a reinsurance of, and it is warranted to be at the same gross rate, terms and conditions as those applying to the Reinsured(s) as agreed at inception. 2. It is further warranted that the Reinsured(s) will retain during the currency of this policy the amount as agreed by the Reinsurers at inception. 4. Subject to the foregoing, it is a condition precedent to any liability under this Reinsurance that: (a) no amendment to the terms or conditions of, or additions to or deletions from the original policy shall be binding upon the Reinsurers unless prior agreement has been obtained from the said Reinsurers; (b) the Reinsured(s) shall upon knowledge of any loss or losses which may give rise to a claim under this Reinsurance, advise the Reinsurers within 72 hours; (c) the Reinsured(s) shall furnish the Reinsurers with all information available respecting such loss or losses, and the Reinsurers shall have the sole right to appoint adjusters, assessors, surveyors and/or lawyers and to control all negotiations, adjustments and settlements in connection with such loss or losses.

PASSENGER VOLUNTARY SETTLEMENT ENDORSEMENT 1 In consideration of an additional premium of {Response}, it is agreed that the Insurers will at the request of and regardless of legal liability of the Named Insured offer settlement on the basis of the benefits hereinafter set forth in respect of bodily injury sustained by any passenger caused by an Accident provided that at the time of such Accident causing such bodily injury the Passenger Liability Section of the Policy is effective in respect of such accident. 2. LIMITS OF SETTLEMENT For death or for total loss of two limbs or total loss of sight of two eyes or total loss of one limb and total loss of sight of one eye (or any combination thereof) the amount offered shall not exceed the amount expressed as the limit of settlement for “each passenger” shown below; or For total loss of one limb or total loss of sight of one eye the amount offered shall not exceed one half of the amount expressed as the limit of settlement for “each passenger” shown below. For permanent total disablement other than by loss of limbs or sight the amount offered shall not exceed the amount expressed as the limit of settlement for “each passenger” shown below. Subject to the limit for “each passenger” the total of the amounts which the Insurers shall offer on account of bodily injury sustained by two or more passengers in any one Accident shall not exceed the amount expressed as the limit of settlement for “each Accident” shown below. 4. ADDITIONAL EXCLUSIONS The Insurers shall not be liable under the terms of this Endorsement (a) for any payment which may be used to satisfy that obligation for which the Insured or any Company as his insurer may be held liable under workers compensation, employers liability, unemployment compensation or disability benefits law or any similar law; (b) for bodily injury to any passenger caused by his suicide or attempted suicide or intentional self-injury or own criminal or felonious act or by his own act whilst in a state of insanity or intoxication; (c) for bodily injury to any passenger caused by disease or natural causes, or medical or surgical treatment (except where such treatment is rendered necessary by bodily injury caused by Accident within the scope of this Endorsement); (d) for bodily injury to any passenger carried for hire or reward;

(e) for bodily injury to any member of the flight or cabin crew. ADDITIONAL CONDITIONS (a) The Insured shall furnish, as soon as practicable after each request from the Insurers, reasonably obtainable information pertaining to bodily injury sustained by passengers. In the event of death immediate notice must be sent to the Insurers. (b) In consideration of any settlement under the provisions of this Endorsement and as a condition precedent thereto, the Insurers shall be provided with a full legal release for all claims for damages against the Insured and/or any other party(ies) protected by

this Policy from the injured passenger and/or any person having a cause of action for such bodily injury. If the injured passenger or any person claiming by, through or under him shall fail

to accept in writing within thirty (30) days from the date of offering the voluntary settlement under the provisions of this Endorsement or to execute the necessary release then the Insurers may, at their option, withdraw the offered voluntary settlement, without notice, in which circumstances the Insurers will no longer be bound by the undertakings expressed in the preceding paragraphs. If subsequent to an offer of voluntary settlement being made in respect of any passenger any claim suit or demand is made or prosecuted against the Insured for damages on account of such bodily injury, such claim suit or demand shall be considered as refusal to accept such voluntary settlement and the obligations of the Insurers as expressed in the Passenger Liability Section of the Policy to which this Endorsement is attached, shall be available as fully and completely as if this Endorsement had not been issued.

CUT-THROUGH CLAUSE

The cut-through clause is a provision in a reinsurance agreement which clarifies that, should the primary insurer becomes insolvent, the reinsurer is still liable for its stated share of the loss but that payment will be made directly to the insured and not to the insurer as is normally done.

CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 EXCLUSION CLAUSE. The rights of a person who is not a party to this insurance or reinsurance to enforce a term of this insurance or reinsurance and/or not to have this insurance or reinsurance rescinded, varied or altered without his consent by virtue of the provisions of the Contracts (Rights of Third Parties) Act 1999 are excluded from this insurance or reinsurance.

AIRCRAFT LAYING-UP RETURNS CLAUSE (AVN26) If the insurance contract provided insurance for the flight, taxiing and parking, insurance cover may be restricted only for parking of aircraft, and then re-insurance premiums after the insurance contract. This should be the following conditions are met: 1. The insurer must notify the insurer in advance of the dates of the beginning and end of the parking. 2. Return of the insurance premium will not be made:

a) If the period of parking will be working to extend the certificate of fitness civilian

aircraft to fly or work necessary;

b) if the period of parking less than 30 continuous days. If a park for more than 30 days, but at this time of the work carried out in paragraph (a), the definition of duration is calculated difference between the overall period of parking and forth for the period (s). In the case of a difference of more than 30 days, a refund of the premium will be.

c) if a period of the insurance contract were any insurance payments. If all the above conditions insurer will be returned Strahovatelyu 75% of the difference between the total insurance premium for insurance contract and insurance premiums for parking (from the current insurer) for the valid period of parking. If parking is still continuing 30 days or more, part of which belongs to effect insurance contract, a portion of renewable insurance contract, the calculation of the return is in proportion to the number of days of parking within ended contract, by the total number of days of parking.

AVN 92 – CARGO LEGAL LIABILITY ENDORSEMENT This Endorsement extends the coverage provided under Section (Blank) of this Policy, subject to the Limit of Indemnity and to the Deductible stated below, for legal liability in respect of accidental physical loss of or damage to cargo whilst in the care, custody or control of the Insured, for the purpose of carriage by air. Provided always that 1. Before accepting any cargo for the purpose of carriage by air the Insured shall take such measures (including but not limited to the issue or acceptance of an air waybill) as are necessary to exclude or limit liability for claims in respect of the accidental physical loss of or damage to that cargo to the extent permitted by law. In no event shall the amount of the indemnity provided by Insurers under this Endorsement exceed the amount of the legal liability, if any, that would have existed had the Insured taken such measures. 2. The Insured shall ensure that cargo in their care, custody or control is kept in secure premises at all times other than during transit. Coverage provided by this Endorsement attaches from the time of acceptance of such cargo by the Insured and ceases upon delivery by the Insured at the final destination or when handed over to a successive carrier. This Endorsement does not apply to legal liability in respect of: 1. delay or loss of market; 2. perishables and/or livestock; 3. consequential loss howsoever arising; 4. slung loads; 5. money, securities, precious stones, precious metals, jewellery, fine art and antiques of any kind. LIMIT OF INDEMNITY: NONE DEDUCTIBLE: NONE

REINSURANCE UNDERWRITING AND CLAIMS CONTROL CLAUSE. 1. This Policy is a reinsurance of………………………….., and it is warranted to be at the same gross

rate, terms and conditions as those applying to the Reinsured(s) as agreed at inception. 2. It is further warranted that the Reinsured(s) will retain during the currency of this policy the amount as agreed by the Reinsurers at inception. 3. Subject to the foregoing, it is a condition precedent to any liability under this Reinsurance that: (a) no amendment to the terms or conditions of, or additions to or deletions from the original policy shall be binding upon the Reinsurers unless prior agreement has been obtained from the said Reinsurers; (b) the Reinsured(s) shall upon knowledge of any loss or losses which may give rise to a claim under this Reinsurance, advise the Reinsurers within 72 hours; (c) the Reinsured(s) shall furnish the Reinsurers with all information available respecting such loss or losses, and the Reinsurers shall have the sole right to appoint adjusters, assessors, surveyors and/or lawyers and to control all negotiations, adjustments and settlements in connection with such loss or losses.

AVN 88 – PROFIT COMMISSION ON RENEWAL CLAUSE After expiry of this Policy and following the receipt by the Insurers of the final adjustment of all premiums due and settlement of all Aircraft loss or physical damage claims in respect of this period of insurance and subject to renewal with the Insurers hereon, Insurers agree to return to the Insured a Profit Commission of % of the net ascertained profit in respect of this period of insurance. The net ascertained profit shall be calculated by deducting the 'outgo' from the 'income' as follows:- Income % of premium paid for Aircraft loss or physical damage coverage less all returns of premium. Outgo Total of settled Aircraft loss or physical damage claims and related expenses less any salvages and recoveries.

INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL, BIOLOGICAL, BIO-CHEMICAL AND ELECTROMAGNETIC WEAPONS EXCLUSION CLAUSE (CL 370) This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from

1. ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel

2. the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof

3. any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter

4. the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes

5. any chemical, biological, bio-chemical, or electromagnetic weapon.

CL370

AIRCRAFT FINANCIAL INTEREST ENDORSEMENT. It is noted that the Party named in the Schedule hereto has a financial interest in the Aircraft under the Agreement. Accordingly, with respect to losses occurring during the period from the Effective Date of this Endorsement until the expiry of the Insurance or until the satisfaction of the obligations under the Agreement, whichever shall first occur, in respect of the interest of the Party and in consideration of an Additional Premium IT IS UNDERSTOOD AND AGREED THAT: 1. The insurance afforded by this Policy for loss of or physical damage to the insured Aircraft shall not be invalidated as regards the interest of the Party by any act or omission by the Insured which results in a breach of any term, condition or warranty of the Policy PROVIDED THAT the Party has not caused, contributed to or knowingly condoned the said act or omission. Nevertheless any change in title or ownership of the Aircraft, conversion,

embezzlement or secretion by the Insured in possession of the Aircraft is not covered hereunder. 2. The protection afforded to the Party by the terms of this Endorsement shall be limited to loss of or

physical damage to the insured Aircraft and shall not exceed the Original Amount under the Agreement less any relevant Policy Deductible and less all matured Instalments paid or due prior to the accident giving rise to a loss hereunder.

3. The Party shall notify the Insurers of any increase in hazard which comes to the Party's

attention and if agreed by the Insurers it shall be endorsed on the Policy, the Party agreeing to pay any additional required premium if the Insured fails to do so on demand of the Insurers.

4. If the Insured fails to notify the Insurers as specified in the Policy Conditions of any event likely to give rise to a claim under the Policy, the Party shall do so immediately he becomes aware of the event in form and manner as prescribed by the Policy. 5. Upon payment of any loss or claim to the Party, Insurers shall to the extent and in respect of such

payment be subrogated to all legal and equitable rights of the Party. At the expense of Insurers the Party shall do whatever is necessary to assist the Insurers to exercise such

rights. 6. Except in respect of any provision for Cancellation or Automatic Termination specified in the Policy or

any endorsement thereof, cover provided by this Endorsement may only be cancelled by Insurers giving not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers. In the event of cancellation for non-payment of premium, the Party shall have the option to pay all outstanding premiums in respect of the Aircraft within the notice period. EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT THE FINANCIAL INTEREST OF THE PARTY IS COVERED BY THE POLICY FOR LOSS OF OR PHYSICAL DAMAGE TO THE INSURED AIRCRAFT ONLY SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF.

DATE RECOGNITION LIMITED COVERAGE CLAUSE. WHEREAS the Policy of which this Endorsement forms part includes the Date Recognition Exclusion Clause (Clause AVN 2000A), it is hereby understood and agreed that, subject to all terms and provisions of this Endorsement, Clause AVN 2000A shall not apply: (1) to any accidental loss of or damage to an aircraft defined in the Policy Schedule (“Insured Aircraft”); (2) to any sums which the Insured shall become legally liable to pay, and (if so required by the Policy) shall pay (including costs awarded against the Insured) in respect of: (a) accidental bodily injury, fatal or otherwise, to passengers caused by an accident to an Insured Aircraft; and/or (b) loss of or damage to baggage and personal articles of passengers, mail and cargo caused by an accident to an Insured Aircraft; and/or (c) accidental bodily injury, fatal or otherwise, and accidental damage to property caused by an Insured Aircraft or by any person or object falling therefrom. PROVIDED THAT: 1. Coverage provided pursuant to this Endorsement shall be subject to all terms, conditions,

limitations, warranties, exclusions and cancellation provisions of the Policy (except as specifically provided herein), and nothing in this Endorsement extends coverage beyond that which is provided by the Policy.

2. Nothing in this Endorsement shall provide any coverage: (a) in respect of grounding of any aircraft; and/or (b) in respect of loss of use of any property unless it arises out of physical damage to or destruction of property in the accident giving rise to a claim under the Policy. 3. The Insured agrees that it has an obligation to disclose in writing to the Insurers during the Policy period any material facts relating to the Date Recognition Conformity of the Insured’s operations, equipment and products. AVN 2002A 14.3.01 (Applicable to non Aircraft Liability only) AVN 2001A (Applicable to Hull and Aircraft Liability Coverage)

THE YEAR 2000 CLAUSE (DATE RECOGNITION CLAUSE)

Pursuant to this clause, which constitutes an integral part of the General Agreement concerning the Insurance of Goods in Transport (cargo), the insurance cover excludes any types of direct or indirect, material or non-material damage or expenses or any type of liability caused by Year 2000 non-conformity (as defined by the British Standards Institute) of any electronic equipment or software being the property of the Insured or any other person.

UNAUTHORISED USE (THEFT ONLY) This Policy includes cover for loss, damage and liability of the Insured as defined herein whilst the insured aircraft is used in a place and/or in a manner and/or by a person not permitted by this Policy provided such use results from the theft of the aircraft and provided that the Insured takes reasonable precautions to prevent such theft. Nothing in this clause shall extend this policy to indemnify an unauthorised person and/or organisation in respect of any claims for which they may be liable.

NUCLEAR RISKS EXCLUSION CLAUSE 1. This Policy does not cover: i) Loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever

resulting or arising there from or any consequential loss ii) Any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising

from: a) The radioactive toxic, explosive or other hazardous properties of any explosive nuclear assembly or

nuclear component thereof; b) The radioactive properties of, or a combination of radioactive properties with toxic, explosive or other

hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto;

c) Ionising radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous

properties of, any other radioactive source whatsoever.

2. It is understood and agreed that such radioactive material or other radioactive source in paragraph (1)

(b) and (c) above shall not include: i) depleted uranium and natural uranium in any form; ii) Radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific,

medical, agricultural, commercial, educational or industrial purpose. 3 This Policy however does not cover loss of or destruction of or damage to any property or any

consequential loss or any legal liability of whatsoever nature with respect to which: i) The Insured under this Policy is also an insured or an additional insured under any other insurance

policy, including any nuclear energy liability policy; or ii) Any person or organisation is required to maintain financial protection pursuant to legislation in any

country; or iii) The Insured under this Policy is, or had this Policy not been issued would be, entitled to

indemnification from any government or agency thereof. File: W:\London Hull & Liability Clauses\avn38b-nuclear.risks.exclusion.doc

4. Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by

reason of paragraph (2) shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that:

i) in the case of any claim in respect of radioactive material in the course of carriage as cargo, including

storage or handling incidental thereto, such carriage shall in all respects have complied with the full International Civil Aviation Organisation “Technical Instructions for the Safe Transport of Dangerous Goods by Air”, unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation;

ii) This Policy shall only apply to an incident happening during the period of this

Policy and where any claim by the Insured against the Insurers or by any claimant against the Insured arising out of such incident shall have been made within three years after the date thereof;

iii) In the case of any claim for the loss of or destruction of or damage to or loss of use of an aircraft

caused by or contributed to by radioactive contamination, the level of such contamination shall have exceeded the maximum permissible level set out in the following scale:

Emitter Beta, gamma and low toxicity alpha emitters All other emitters Maximum permissible level of non-fixed radioactive surface contamination (Averaged over300cm3) Not exceeding 4 Bequerela/cm2 (104 microcuries/cm2) Not exceeding 0,4 Bequerela/cm2 104 microcuries/cm2) iv) The cover afforded hereby may be cancelled at any time by the Insurers giving seven days’ notice of

cancellation.

NON-OWNED AIRCRAFT ENDORSEMENT. In consideration of an additional premium of NIL it is understood and agreed that in addition to the Aircraft declared hereunder, cover granted under this Policy applies to Aircraft used by the Named Insured but not so declared, ALWAYS PROVIDED the Named Insured :

1. has no interest in the Aircraft as owner in whole or in part 2. exercises no part in the servicing or maintenance of the Aircraft 3. exercises no part in the appointment or provision of personnel for the operation of the Aircraft. THIS ENDORSEMENT does not apply : (a) to liability arising out of any product manufactured, sold, handled or distributed by the

Named Insured

(b) to any Aircraft having a seating capacity, including crew, in excess of TOTAL SEATS PLUS PILOT (c) to liability for loss of or damage to the Aircraft or any consequential loss arising

Therefrom (d) when the Aircraft is used by the Named Insured for hire and reward. All other terms and conditions

of the Policy remain unchanged.

PREMIUM PAYMENT CLAUSE. 1) It is understood and agreed that the premium due at the inception of this Policy shall be payable in the following instalments: 2) In the event of a claim hereunder which exceeds the instalments of premium paid on this Policy, the instalments of premium then outstanding shall become payable forthwith. 3) Notwithstanding any cancellation provision contained within the Policy, in the event that an instalment of premium is not paid by its due date Insurers shall have the right to terminate the cover afforded by the Policy to the Insured and any other party(ies) protected thereby,

whether by endorsement or otherwise, by the giving of not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers.

CIVIL AVIATION – CARRIAGE OF CHILDREN CLAUSE- AES-3/99A It is noted and agreed that the seating of Aircraft as stated above is amended in accordance with Israel Civil Aviation Authority regulations in respect of carriage of children up to the age of 12 years. In accordance with above, Aircraft may carry persons in excess of the declared maximum seating capacity subject to Israel Civil Aviation Authority regulations not being exceeded. CIVIL AVIATION AUTHORITY TRAINEE ENDORSEMENT It is noted and agreed that this Policy is extended to indemnify the Insured in respect of Liability assumed under agreement with the Civil Aviation Authority in connection with the flying training by the Insured of employees of the Civil Aviation Authority and the Passenger Legal Liability section is extended to include Civil Aviation Authority employees whilst acting as crew members. LSW707 (12/93) CIVIL AVIATION AUTHORITY AIRWORTHINESS DIVISION CLAUSE It is noted and agreed that the cover hereunder remains operative whilst the insured aircraft is being flown by any Civil Aviation Authority approved pilot for the purpose of a test flight and during any such test flight the Civil Aviation Authority Airworthiness Division are included as Joint Insureds in respect thereof. Nevertheless, notwithstanding the inclusion hereon of more than one Insured the total liability of the Underwriters in respect of any or all Insureds shall not exceed the limits of liability stated in this policy.

12/93 LSW708 LIABILITY TO EMPLOYEES AND/OR DIRECTORS CLAUSE It is hereby understood and agreed that the Liability coverage afforded under this Insurance is deemed to apply to bodily Injury to any employee and/or Director of the Insured arising out of flying as a passenger only, including mounting into or dismounting from the Insured Aircraft, in the course of his employment by the Insured, but this Policy does not apply to any obligations for which the Insured or a Company as his Insurer may be held liable under any employers Legal Liability and/or Workers compensation Act or equivalent legislation. Notwithstanding the foregoing, the total Liability of the Insurers shall not exceed the limit of Indemnity shown in the Policy Schedule.

NUCLEAR/CHEMICAL/BIOLOGICAL TERRORISM EXCLUSION It is agreed that, regardless of any contributory cause(s), this insurance does not cover any claim(s) in any way caused or contributed to by an act of war or terrorism involving the use or release or the threat thereof of any nuclear weapon or device or chemical or biological agent. For the purpose of this exclusion an act of war or terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or ethnic purposes or reasons including the intention to influence any government and/or to put the public, or any section of the public, in fear. If the Underwriters allege that by reason of this exclusion any claim is not covered by this insurance the burden of proving the contrary shall be upon the Assured. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED LSW1175 Page AVN 73 LIABILITY TO PILOTS AND CREW CLAUSE It is understood and agreed that notwithstanding any exclusion specifically relating to pilots and operational crew in the Section of this Policy covering the liability of the Insured to passengers, such coverage shall extend to include the liability Insured to the pilots and operational crew of the insured Aircraft, but excluding liability required to be insured under the terms of any employers' liability or workmen's compensation legislation or any similar legislation. AVN 73 09.02.01

REINSURANCE UNDERWRITING & CLAIMS CONTROL CLAUSE 1. Being a Reinsurance of the NAME OF INSURED Company and, except as provided by paragraph 2

hereof, warranted the same gross rate, terms and conditions as the said Company as agreed at inception, and that the said Company retains during the currency of this Policy at least % THAT WE HAVE COVER FOR on the identical subject matter and risk and in identically the same proportion on each separate part thereof, but in the event of the retained line being less than as above, Underwriters' lines to be proportionately reduced.

2. Subject to the foregoing, it is a condition precedent to any liability under this Reinsurance that: (a) no amendment to the terms or conditions or additions to or deletions from the original policy shall be binding upon Underwriters hereon unless prior agreement has been obtained from the said Underwriters; (b) the Reinsured shall upon knowledge of any loss or losses which may give rise to a claim under this policy, advise the Underwriters by cable within 72 hours; (c) the Reinsured shall furnish the Underwriters with all information available respecting such loss or losses, and the Underwriters shall have the sole right to appoint adjusters, assessors, surveyors and/or lawyers and to control all negotiations, adjustments and settlements in connection with such loss or losses. AVN41 GROUND HANDLING/SERVICE AGREEMENTS It is hereby noted and agreed to waive rights of subrogation against and hold harmless companies or other entities with whom the Insured has entered into agreements in respect of ground handling or servicing in accordance with usual operating practice. LSW704(12/93) NON-AVIATION LIABILITY CLAUSE This Policy does not cover the Insured's liability unless it arises from one or more of the following:- 1. Occurrences involving aircraft or parts or equipment relating thereto. 2. Occurrences arising at airport locations. 3. Occurrences arising at any other location in connection with the Insured's business of transporting passengers or goods by air. 4. Occurrences arising out of the supply of goods or services to others (i) in connection with the use and/or operation of aircraft (ii) involved in the air transport industry. AVN 59 (19.12.85)

PERSONAL INJURY EXTENSION The insurance provided by this Policy extends to include the Named Insured's legal liability for damages sustained by any person arising out of one or more of the following offences committed during the Policy period. 1. False arrest: restraint, detention or imprisonment. 2. Malicious prosecution. 3. Wrongful entry, eviction or other invasion of the right of private occupancy. 4. Inadvertent discrimination with respect to withholding or refusal of transportation except with respect to

overbooking. 5. The publication or utterance of a libel or slander or of other defamatory or disparaging material in

violation of an individual's right of privacy except publication or utterance in the course of or related to advertising, broadcasting or telecasting activities conducted by or on behalf of the Named Insured.

6. Incidental medical malpractice error or mistake by a physician, surgeon, nurse, medical technician or other person performing medical services but only for or on behalf of the Insured in the provision of emergency medical relief.

The following additional exclusions shall apply to the Insurance provided by this extension:- (a) liability assumed by the Named Insured under any contract or agreement. (b) personal injury arising out of the wilful violations of penal statute or ordinance committed by or

with the knowledge or consent of the Named Insured. (c) personal injury arising out of offence 5 above,

(i) if the first injurious publication or utterance of the same or similar material was made prior to the effective date of this insurance.

(ii) if such publication or utterance was made by or at the direction of the Insured with the knowledge of the false nature thereof.

(d) liability for personal injury sustained by any person directly or indirectly related to the past,

present or potential employment of such person by the Insured. The limit of liability applicable to Personal Injury claims shall be .............. any one offence and in the aggregate during the Policy period being within the overall Policy limit and not in addition thereto. It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this extension in coverage is only applicable where coverage is provided in accordance with Clause

AVN 60 (19.12.85)

AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT It is noted that the Contract Party(ies) have an interest in respect of the Equipment under the Contract(s). Accordingly, with respect to losses occurring during the period from the Effective Date until the expiry of the Insurance or until the expiry or agreed termination of the Contract(s) or until the obligations under the Contract(s) are terminated by any action of the Insured or the Contract Party(ies), whichever shall first occur, in respect of the said interest of the Contract Party(ies) and in consideration of the Additional Premium it is confirmed that the Insurance afforded by the Policy is in full force and effect and it is further agreed that the following provisions are specifically endorsed to the Policy:- 1. Under the Hull and Aircraft Spares Insurances 1.1 In respect of any claim on Equipment that becomes payable on the basis of a Total Loss,

settlement (net of any relevant Policy Deductible) shall be made to, or to the order of the Contract Party(ies). In respect of any other claim, settlement (nett of any relevant Policy Deductible) shall be made with such party(ies) as may be necessary to repair the Equipment unless otherwise agreed after consultation between the Insurers and the Insured and, where necessary under the terms of the Contract(s), the Contract Party(ies). Such payments shall only be made provided they are in compliance with all applicable laws and regulations.

1.2 Insurers shall be entitled to the benefit of salvage in respect of any property for which a

claims settlement has been made. 2. Under the Legal Liability Insurance 2.1 Subject to the provisions of this Endorsement, the Insurance shall operate in all respects as

if a separate Policy had been issued covering each party insured hereunder, but this provision shall not operate to include any claim howsoever arising in respect of loss or damage to the Equipment insured under the Hull or Spares Insurance of the Insured. Notwithstanding the foregoing the total liability of Insurers in respect of any and all Insureds shall not exceed the limits of liability stated in the Policy.

2.2 The Insurance provided hereunder shall be primary and without right of contribution from

any other insurance which may be available to the Contract Party(ies).

2.3 This Endorsement does not provide coverage for the Contract Party(ies) with respect to claims arising out of their legal liability as manufacturer, repairer, or servicing agent of the Equipment.

AVN 67B

FLYING CLOTHING AND EFFECTS CLAUSE

This Policy is extended to cover the Insured or any pilot described in the Schedule of the Policy against loss or damage by theft or fire (or accidental damage if the Aircraft itself be damaged) in respect of flying clothing, maps, navigating equipment and instruments, headsets or similar equipment (not being fixtures in the Aircraft) and baggage (including contents) actually in or on the Aircraft being the property of the Insured or any pilot described in the Schedule to the Policy, but excluding money, credit cards, securities, jewellery and furs of all kinds. This extension is limited to a maximum indemnity of _________________ each Accident. Subject to a deductible of _________________ each Accident.

AVN 75

STATUTORY NOTICE TO SHORT-TERM INSURANCE POLICYHOLDERS IN TERMS OF THE GENERAL CODE FOR AUTHORISED

FINANCIAL SERVICES PROVIDERS AND REPRESENTATIVES

In terms of the Financial Advisory and Intermediary Services Act, you have the right to the following information: PLEASE READ CAREFULLY

DETAILS OF THE UNDERWRITING MANAGERS

ABOUT THE UNDERWRITING MANAGERS

� Independent Aviation Underwriters (Pty) Ltd

(a) Name, physical address, postal address and telephone number.

Independent Aviation Underwriters (Pty) Ltd is a company incorporated in terms of company laws of South Africa bearing registration number 2006/017923/07. Physical Address: Unit 3 D Highway Gardens Office Park, Cnr. Minuach And Partridge Roads, Highway Gardens, Edenvale.

Postal Address: Postnet Suite 110, Private Bag X1, Edenglen,1613 Telephone: (011) 452 6200 Facsimile: (011) 609 3605 Web site: www.iau.co.za Customer Care Line: (011) 452 6200

(b) Legal and Contractual Status of the Provider.

Independent Aviation Underwriters (Pty) Ltd is a

licensed Financial Services Provider (FSP34794).

Independent Aviation Underwriters (Pty) Ltd acts in

an underwriting capacity in accordance with the mandate

which is in place.

Independent Aviation Underwriters (Pty) Ltd has

Professional Indemnity insurance. (c) Compliance Officer contact

details. Bryan Thomas, Pretium Services

Tel: 0861 2COMPLY

Fax: (011) 678 7731 Postal Address: PO Box 9655, Devon Valley, 1715

e-mail address: bryan@pretium.co.za (d) Complaints Department. Should you have a complaint, kindly contact the

complaints department or the Compliance Officer on

0861 2COMPLY. (e) Type of policy involved.

Independent Aviation Underwriters (Pty) Ltd is

authorised to render services pertaining to Short Term

Personal and Commercial Insurance for which

Independent Aviation Underwriters (Pty) Ltd is

authorised in terms of FAIS. Please see your policy

document for individual insurance details.

(f) Extent of premium obligations You agree to pay the premium.

you assume as policyholder.

(g) Manner of payment of premium, due date of premiums and consequences of non-payment.

Your policy schedule details the frequency of payment and amount due. If you do not pay the premium within 15 days of the due date, cover will be cancelled from midnight on the day before the due date. Where Premium is payable monthly by bank debit order or by transmission account, this 15 day extension only applies from the second month after your policy is issued.

ABOUT THE INSURER

� Guardrisk Insurance Company Limited

1. Name, physical address, postal

address and telephone number.

Guardrisk Insurance Company Limited is a company incorporated in terms of company law of South Africa bearing registration number (1999/013922/06)

Physical Address: 90 Rivonia Road, Sandton, 2146 Postal Address: P.O. Box 781692, Sandton, 2146 Telephone: + 27 (011) 669 1000 Facsimile: + 27 (011) 669 1931 Web site: www.guardrisk.co.za

2. Compliance/Complaints

department

Please note that all complaints regarding the advice or services received from the intermediary or Underwriting Managers must be referred to their Compliance Officer referred to in (c) above. All complaints regarding the features of the product must be referred to Guardrisk Insurance Company Limited can be forwarded to Compliance Office at (011) 669-2792 or (011) 669-1039.

OTHER MATTERS OF IMPORTANCE

(a) You must be informed of any material changes to the information referred to in paragraph 1 and 2. (b) If the information in paragraphs 1 & 2 was given orally, it must be confirmed in writing within 30 days. (c) If any complaint to the intermediary of insurer is not resolved to your satisfaction, you may submit the

complaint to the Register of Short-term Insurance. (d) Polygraph or any lie detector test is not obligatory in the event of a claim and the failure thereof may not be

the sole reason for repudiating a claim. (e) If the premium is paid by debit order:

(i.) It may only be in favour of one person and may not be transferred without your approval; and (ii.) The insurer must inform you at least 3 days before the cancellation thereof, in writing, of its intention to

cancel such debit order. (f) The insurer and not the intermediary must give reasons for repudiating your claim. (g) Your insurer may not cancel your insurance merely by informing your intermediary. There is an obligation to

make sure the notice has been sent to you. (h) You are entitled to a copy of the policy free of charge.

WARNING

Do not sign any blank or partially completed application form. Complete all forms in ink. Keep all documents handed to you.

Make note as to what is said to you. Don’t be pressured to buy the product.

Incorrect or non-disclosure by you of relevant facts may influence an Insurer on any claims arising from your wording.

Particulars of Short-term Insurance Ombudsman who is available to advise you in the event claim problems, which are not satisfactorily resolved by the insurance intermediary and / or the insurer.

P.O. BOX 322334, Braamfontein, 2017 Tel : (011) 726-8900 Fax : (011) 726-6501

Particulars of Registrar of Short-term Insurance

Financial Services Board P.O. BOX 35655, Menlo Park, 0102 Tel : (012) 428-8000 Fax : (012) 347-0221