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In consideration of the payment of the premium as set forth elsewhere herein and subject to the limits of 108.10.18 (108)和泰產商品字第126212-1號函備查

HOTAI AVIATION AND SPARES ALL RISKS AND LIABILITY INSURANCE In consideration of the payment of the premium as set forth elsewhere herein and subject to the limits of liability, exclusions, conditions and other terms of this Insurance, the Insurers agree as follows: SECTION ONE 1. HULL ALL RISKS INSURANCE 1.1 COVER: To pay for physical loss of or damage, subject to any applicable deductible as set forth in the Insurance Schedule, to aircraft as described in the Insurance Schedule including parts temporarily detached and not replaced which loss or damage is sustained during the Period of Insurance. With respect to Parts being removed (where replacement is intended) from or attached to the aircraft these shall be deemed to form part of the aircraft as follows: “Parts being removed” - until the moment such part is safely in contact with the ground or the trolley/stand on which it is to be located when the process of removing it from the aircraft is completed and it is totally disconnected from the aircraft and the process of replacing the same (in accordance with the definition below) has commenced. “Parts being attached” - from the moment that such part ceases to be in contact with the ground or the trolley/stand on which it is located when the process of fitting it to the aircraft is commenced. This section does not apply to on board spares, flight spares kits and/or fifth pod carriage of spare engines and attachments as insured under Section Two. 1.2. MISSING AIRCRAFT: If an aircraft takes off and is missing and not reported for a period of 48 hours or more then it shall be deemed to be a total loss and the Insurers agree to pay the agreed value of the aircraft. 1.3. DISMANTLING COSTS, SALVAGE CHARGES AND EXPENSES: This section is also to cover: 1.3.1. the cost of dismantling the aircraft in the event that through force majeure or error in judgement the aircraft lands in any place from which it is unable to take off again together with the cost of transport from the place of landing to the nearest suitable airport and the cost of reassembling there, even if no damage is incurred. The total amount payable in this respect will not, together with the cost of repair, exceed the agreed value

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of the aircraft. 1.3.2. sue, labour and travel costs and expenses and salvage charges and expenses incurred by or on behalf of the Insured for the safety or preservation or recovery of the aircraft, which charges and expenses are payable by the Insurers, notwithstanding that the Insurers may have paid a total loss. Such charges and expenses shall be payable in addition to any other amounts which may be payable under this Section One. 1.4. MECHANICAL BREAKDOWN – EXCLUSION: This section does not cover loss or damage which is due and confined to wear and tear, gradual deterioration, freezing, breakdown or failure, but this exclusion shall not apply to resultant loss of or damage to the aircraft caused thereby. In respect of a propulsion unit this shall be regarded as a complete unit and shall consist of the engine and the ancillaries necessary for its operation as an engine so that any failure, breakdown and the like and the consequences thereof within the propulsion unit are excluded, other than items lost overboard. Provided always that in the event of a landing as described in paragraph 1.3.1. of this section the Insurers will pay the costs as set forth therein even though no impact damage may have resulted from such landing. 1.5. INGESTION: It is agreed that damage to engines caused by the ingestion of stones, grit, dust, sand, ice or any corrosive or abrasive material or any other substance which has a progressive or cumulative engine damage effect is deemed to be wear, tear or deterioration and is excluded from this section. Nevertheless ingestion causing sudden damage attributable to: 1.5.1.a single recorded incident necessitating the immediate withdrawal of the engine from service or if in the opinion of the Insured this is impractical or unnecessary then immediately upon return to home base is covered hereunder. 1.5.2.a single identifiable incident that can be substantiated by date and time by the use of engine trend monitoring equipment shall be covered hereunder. Such coverage shall exclude any additional loss or damage which has occurred between the incident date and the date of its identification due to the continued operation of the engine. 1.6. COST OF REPAIRS: In the event of loss or damage to an aircraft insured hereunder the Insurers will pay the cost of repairs less the amount of the applicable deductible. The cost of repairs shall include the cost of transportation of personnel, materials, tools and equipment required to effect the repairs to and/or from the place where the repairs are carried out and/or the cost of transporting the aircraft or damaged parts to and/or from the place where repairs are to be carried out. Transportation shall be by the most practical means whether by surface or air. In the event of loss or damage to the aircraft being repaired by the Insured (including work carried out under paragraph 1.3.1. of this section) the actual wages paid for labour shall be allowed plus 250% or alternatively at the Insured’s option the labour costs shall be charged on the Insured’s average man hour tariff applicable at the time. Materials shall be charged at actual replacement cost which shall include insurance and transportation costs incurred in connection with their delivery to the Insured’s base, any applicable import taxes and the like plus 30%. In the event of any other firm effecting repairs, the cost of repairs shall be the actual amount of the account increased by the reasonable cost to the Insured for supervising the repairs.

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The cost of repairs to the aircraft shall also include the cost of necessary test flights and the cost of obtaining reinstatement of the Certificate of Airworthiness. Provided always that in no event shall the amount due with respect to a partial loss exceed the amount due were the loss payable as a total loss less the amount of the applicable deductible as set forth elsewhere herein. 1.7. AGREED VALUE - TOTAL LOSS: In the event of a claim arising under this section being settled on the basis of a total loss the Insurers shall pay the agreed value of the aircraft concerned as per the schedule of aircraft set out in the Insurance Schedule. A constructive total loss may be declared under this section, at the option of the Insured, in the event that the cost of repairs be estimated at 75% (seventy five per cent) or more of the agreed value. Nothing herein contained shall be deemed to prevent the declaration of a constructive total loss by mutual agreement between the Insurers and the Insured in the event that the cost of repairs is estimated at less than 75% (seventy five per cent) of the agreed value. In the event that the Insurers pay for a total loss the Insurers may elect to take the aircraft (together with all documents of record, registration and title thereto) as salvage. 1.8. NO ABANDONMENT: Unless the Insurers elect 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 Insurers. 1.9. LEASED ENGINES OR COMPONENTS: In the event that an aircraft insured hereon is fitted with leased engines or components the agreed value of such aircraft is automatically increased, at nil additional premium, by the value of the leased engines or components for the period the leased engines or components are fitted, subject always to the maximum agreed value not being exceeded. However, the foregoing shall not increase the stated agreed value of the aircraft when applying any constructive total loss clause hereon. In the event of a claim being settled on a total loss basis, the Insurers will be entitled to the benefit of salvage in respect of the removed engines or components. 1.10. TOTAL LOSS ONLY: In the event that any aircraft set forth in the schedule of aircraft is declared and settled as a total loss, constructive total loss or arranged total loss, the Insurers will in addition to the agreed value of the aircraft pay any total loss only amount as set forth in the schedule of aircraft. The Insurers shall have no additional rights of salvage in respect of any amounts payable under this clause. 1.11. UNEARNED PREMIUM INSURANCE: In the event of a claim adjustable on the basis of a total loss the Insurers will indemnify the Insured for and will pay as a claim the unearned portion of the premium paid for loss of or physical damage to the aircraft the subject of the loss computed at pro rata from the day following the loss to the expiry date of this Insurance. AVN79

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1.12. AMOUNT IN ADDITION TO AGREED VALUE AND TOTAL LOSS ONLY AMOUNT: In the event of a total loss, constructive total loss or arranged total loss of an aircraft insured hereunder, this Insurance will pay an additional amount of in respect of OO Airlines Limited in full in addition to the agreed value and Total Loss Only Sum Insured of the aircraft, up to a maximum of ………. in the annual aggregate across OO Airlines Coverage afforded hereunder will not operate to increase the maximum agreed value provision as set forth in the Insurance Schedule. 1.13. TECHNICAL RECORDS The Insurers shall pay the applicable amount as set forth in the Insurance Schedule to indemnify the Insured for Reconstitution Costs incurred by or on behalf of the Insured in respect of the aircraft or Spares: 1.13.1.in the event that the Technical Records of the aircraft or Spares are discovered during the Period of Insurance to be lost or damaged (or there is a justifiable suspicion thereof), and after diligent search cannot be found. 1.13.2.covered under Endorsement Thirteen - Contingent Hull, in the event such Technical Records are not returned to the Insured, or are returned incomplete or deficient to the Insured, upon expiry or termination of a lease. However, the foregoing applies only if a complete set of such Technical Records are in existence at inception of the Period of Insurance: SECTION TWO 2. SPARES ALL RISKS INSURANCE 2.1. COVER: To pay for physical loss of or damage, subject to any applicable deductible as set forth in the Insurance Schedule, sustained during the Period of Insurance to spare parts, engines, flight spares kits and/or on board spares (both including whilst attached to aircraft), ground support equipment (including unlicensed vehicles), tools, components and equipment destined to be fitted to or to form part of an aircraft and/or to be used in connection with the servicing, maintenance or repair of aircraft, aircraft service items and including all other equipment used in connection with the Insured’s business (hereinafter referred to as “Spares”). Coverage which is afforded hereunder applies to Spares being the property of the Insured or the property of others for which the Insured has agreed to be responsible which loss or damage is sustained whilst such property is in the care, custody or control of the Insured, whilst at the premises of others or whilst in transit by any means of conveyance (including by the Insured’s aircraft). FIRST LOSS In the event of a loss arising under this Section which exceeds the limit of Insurers’ liability as set forth in the Schedule Insurers agree to pay the full amount of such limit, less any applicable deductible, and the balance of such loss shall be borne by the Insured. 2.2. EXCLUSIONS: This section does not cover: 2.2.1.loss of or damage to property which (i) is fitted to or which forms part of an aircraft or (ii) has been

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detached from an aircraft and is intended to be refitted to the aircraft and not replaced by other property. However, this exclusion does not apply to flight spares kits, on board spares or fifth pod carriage of spare engines and attachments. 2.2.2.loss or damage which is due and confined to wear and tear, gradual deterioration, freezing, breakdown or failure. In respect of a propulsion unit this shall be regarded as a complete unit and shall consist of the engine and the ancillaries necessary for its operation as an engine so that any failure, breakdown and the like and the consequences thereof within the propulsion unit are excluded. 2.2.3.loss of or damage to an engine sustained during engine running caused by the ingestion of stones, grit, dust, sand, ice or any corrosive or abrasive material or any other substance which has a progressive or cumulative engine damage effect which is deemed to be wear, tear or deterioration and is excluded from this section. Nevertheless, ingestion causing sudden damage attributable to a single recorded incident, is covered. 2.2.4.mysterious disappearance or unexplained loss or shortage disclosed upon taking inventory. 2.2.5.the property of others carried or stored for hire or reward. 2.2.6.loss of or damage to any property hereby insured which may be sustained whilst the same is under process and directly resulting therefrom. For the avoidance of doubt the test running of an engine shall be deemed not to be a process. 2.3. REPAIR COSTS – REPLACEMENT: In respect of partial damage to any Spares the cost of repairs shall include the applicable costs as detailed in paragraph 1.6. of Section One. In the event of loss or damage beyond economical repair of any Spares the sum recoverable hereunder shall be the actual replacement cost which shall include insurance and transportation costs incurred in connection with their delivery to the Insured’s base and any applicable import taxes and the like or the insured value, whichever shall be the least amount, but where an agreed value has been agreed between the Insured and the Insurers the sum recoverable shall be the agreed value. Where Insurers pay for loss or damage beyond economical repair the Insurers may elect to take the affected Spare(s) (together with all documents of record, registration and title thereto) as salvage. 2.4. SALVAGE CHARGES AND EXPENSES: This section also covers salvage charges and expenses incurred by or on behalf of the Insured for the safety or preservation or recovery of Spares, which charges and expenses are payable by the Insurers in addition to any other claim under this section. 2.5. PARTS DETACHED FROM/BEING ATTACHED TO AIRCRAFT: With respect to parts removed from an aircraft (where replacement is intended) coverage for such removed parts attaches under this section as follows: “parts removed” - from the moment such part is safely in contact with the ground or the trolley/stand on which it is to be located when the process of removing it from the aircraft is completed and it is totally disconnected from the aircraft and the process of replacing the same (in accordance with the definition below) has commenced. With respect to parts being attached to the aircraft coverage under this section shall cease and these parts shall be deemed to form part of the aircraft as follows: “parts being attached”- from the moment that such part ceases to be in contact with the ground or the trolley/stand on which it is located when the process of fitting it to the aircraft is commenced.

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SECTION THREE 3. AVIATION LIABILITY INSURANCE 3.1. COVER To pay on behalf of the Insured all sums which the Insured shall become legally liable to pay as damages for Bodily Injury and/or Property Damage caused by an Occurrence and arising out of or in connection with the Insured’s operations, up to the limit, and subject to any applicable deductible, as set forth in the Insurance Schedule. 3.2. DECLARED VALUES: The coverage provided under this section includes coverage for the Insured’s liability for Property Damage to passenger baggage and cargo for which the Insured or their agents have accepted a declared value in excess of the applicable limit under the provisions of the Warsaw Convention or other applicable law. 3.3. EXCLUSIONS: 3.3.1. Non-Aviation Liability Clause: This section does not cover the Insured’s liability unless it arises from one or more of the following: 3.3.1.1.Occurrences involving aircraft or parts or equipment relating thereto. 3.3.1.2.Occurrences arising at airport locations. 3.3.1.3.Occurrences arising at any other location in connection with the Insured's business of transporting passengers or goods by air. 3.3.1.4.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. 3.3.2. This section does not cover the Insured’s liability 3.3.2.1.to its employees for Bodily Injury arising out of and in the course of their employment. This exclusion is not applicable to the Insured’s liability to its employees for Bodily Injury sustained whilst they are being carried in the Insured’s aircraft, nevertheless this Insurance does not cover any liability for which the Insured may be held liable under any workers compensation act or employers liability legislation or any similar legislation. 3.3.2.2.arising out of its ownership or operation of hotels, leisure resorts, social clubs and sports complexes. 3.3.2.3.arising out of its operations as a tour operator or travel agent, but this exclusion does not apply to liability arising out of a contract of carriage by air. 3.3.2.4.arising out of its ownership or operation of shops and restaurants but this exclusion shall not apply to legal liability arising out of the ownership or operation by the Insured of shops and restaurants at airport premises or at off-airport check-in facilities. For the purposes of this exclusion it is agreed that ticket offices are deemed not to be shops. 3.3.2.5.arising out of sponsorship or promotional activities except those conducted on airport premises or directly related to the operation of aircraft. 3.3.2.6.for Property Damage to property owned by, loaned to, rented to, leased to or occupied by the Insured. For the purpose of this exclusion property leased, conditionally sold or otherwise supplied to

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others under terms which are intended to transfer the risk of loss or damage to others shall be deemed not to be owned by, loaned to, rented to or leased to the Insured. 3.3.2.7.for Bodily Injury or Property Damage caused by any ships, vessels or boats owned, chartered, used or operated by the Insured. 3.3.2.8.arising from the use of any mechanically propelled vehicle which the Insured may use or cause or permit any other person to use on the road in such a manner as to render them responsible for insurance or security under any domestic or international law appertaining to road traffic, or where no such law exists, whilst such vehicle is on any public highway. In respect of any such liability arising from an Occurrence within the confines of an airport or airfield this exclusion does not apply: 3.3.2.8.1. if there is no such applicable law; 3.3.2.8.2. to the liability of the Insured to pay an amount which is excess of: 3.3.2.8.2.1.any prescribed limit that is required to be insured where insurance may be effected to comply with the law whether the Insured effects an insurance in respect of such liability or not 3.3.2.8.2.2.the limit of liability of the insurance effected by the inured in respect of such liability whichever is the greater. 3.3.2.9.for the cost of repairing or replacing any defective goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the Insured or any defective part or parts thereof. 3.3.2.10.in respect of any fiduciary responsibility. 3.3.2.11.arising out of its advertising activities, but this exclusion is not applicable to Bodily Injury or Property Damage. 3.3.2.12.arising from illegal or criminal activities or dishonest acts alleged or otherwise committed by or at the direction of or with the knowledge or consent of the management or directors and officers of the Insured. 3.3.2.13.for Property Damage to an aircraft which is in the care, custody or control of the Insured for the purpose of storage, safekeeping, service, handling or maintenance whilst such aircraft is in Flight. 3.3.2.14.for loss of use of tangible property which has not been physically damaged or destroyed 3.3.2.14.1.arising from a delay in or lack of performance by or on behalf of the Insured of any contract or agreement in accordance with its terms 3.3.2.14.2.arising from improper or inadequate performance of goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the Insured but this exclusion does not apply to loss of use of other tangible property arising out of sudden and accidental physical damage to or destruction of the Insured's goods or products after they have been put to their intended use by somebody other than the Insured. 3.3.2.15.arising out of construction of, demolition of or alterations to buildings, runways or installations by the Insured or their contractors or sub-contractors, other than normal maintenance operations. 3.3.2.16.for the cost of making good any faulty workmanship but this exclusion does not apply to resulting damage arising from such faulty workmanship. 3.4. DEFENCE, SETTLEMENT AND SUPPLEMENTARY PAYMENTS:

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3.4.1.With respect to such coverage as is afforded under this section (and any endorsements applicable to this section) the Insurers shall have the right and obligation to defend at their cost and expense in the name of and on behalf of the Insured any suit or other proceedings, even if groundless, false or fraudulent, brought against the Insured seeking damages as respects liability for which coverage is provided by this Insurance. However, the Insurers shall have the right to make such investigation, negotiation and settlement of any claim or suit as they deem expedient. Furthermore, the Insurers shall pay all expenses incurred by the Insured with the Insurers’ approval (other than the salaries of the Insured’s employees and the Insured’s normal office expenses) in respect of any such suit or other proceedings brought against the Insured. 3.4.1.2.pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this Insurance and all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish any such bonds. 3.4.1.3.pay all costs taxed against the Insured in any such suit or proceedings and all interest accruing after entry of judgement until the Insurers have paid, tendered or deposited in court, such part of such judgement as does not exceed the applicable limit of the Insurers’ liability. The Insurers shall only be liable to pay for that proportion of the said costs and interest which the applicable limit of the Insurers’ liability bears to the amount of such judgement. 3.4.2.The amounts incurred under this paragraph 4. except settlements of claims and suits are payable by the Insurers in addition to the limit of the Insurers’ liability as set forth in the Insurance Schedule. However with respect to any coverage which is subject to an aggregate limit hereunder the Insurers shall not be obligated to defend any suit nor pay any costs or expenses after the aggregate limit of liability under this Insurance has been exhausted and in this event the Insured shall have the right to take over control of proceedings from the Insurers. 3.5. ADDITIONAL EXPENSES EXTENSION: 3.5.1.The Insurers agree to pay: 3.5.1.1.any reasonable expenses incurred for the purpose of search and rescue operations for an aircraft insured hereunder determined to be missing. 3.5.1.2.any reasonable expenses incurred for the purpose of the foaming of a runway or an aircraft to prevent or mitigate possible loss or damage because of malfunction or suspected malfunction of an aircraft insured hereunder. 3.5.1.3.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. 3.5.1.4.any reasonable expenses which the Insured may be called upon to pay in respect of any public enquiry or enquiry by the Civil Aviation Authority or any other relevant authority into an accident insured hereunder. 3.5.1.5.any reasonable expenses incurred by or on behalf of the Insured for fire and crash control in respect of a loss to an aircraft insured hereunder. 3.5.1.6.any reasonable expenses for sustenance, first aid, hospital and medical service, funeral, burial and/or repatriation of bodies and injured persons, travel and accommodation for visits to the scene of an accident and additional expenses incurred in connection with memorial services following an Occurrence for which indemnity for the legal liability of the Insured is provided by this Section. 3.5.1.7.any reasonable expenses for any other acts of humanity (other than those specified in paragraph 3.5.1.6.)), incurred following an Occurrence for which indemnity for the legal liability of the Insured is provided by this Section. 3.5.1.8.any reasonable expenses incurred by or on behalf of the Insured or assumed under contract arising out of a loss covered hereunder for (1) the use of an emergency procedures centre and/or (2) the use of a

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crisis management centre. 3.5.1.9.any reasonable costs and expenses arising from aircraft diversion due to passenger or crew illness as incurred. 3.5.1.10.any reasonable costs and expenses arising from aircraft diversion due to unexpected passenger action as incurred. Amounts payable under this paragraph 3.5. are payable within the combined single limit as set forth in the Insurance Schedule, however, coverage under paragraphs 3.5.1.7. and 3.5.1.10. shall be subject to a sub-limit of any one Occurrence and in the annual aggregate. 3.6. UNITED STATES FOREIGN AIR CARRIER FAMILY SUPPORT AND AVIATION DISASTER FAMILY ASSISTANCE ACTS: The Insurers agree to indemnify the Insured for all reasonable expenses incurred arising out of the requirements of the Aviation Disaster Family Assistance Act of 1996 or the United States Foreign Air Carrier Family Support Act of 1997 as applicable. Amounts payable under this paragraph 3.6. are payable within the combined single limit as set forth in the Insurance Schedule. 3.7. AUTOMATIC PASSENGER PERSONAL ACCIDENT INSURANCE: To enable the Insured to comply with any local legislation requiring automatic personal accident insurance for passengers this Insurance is extended to include such automatic personal accident insurance up to the statutory limits prescribed by such legislation. Amounts payable under this paragraph 3.7. are payable within the combined single limit as set forth in the Insurance Schedule. 3.8. BAIL AND/OR GUARANTEE: The Insurers will pay the cost of any bail and/or guarantee required to obtain the release of an aircraft or crew member or their property or to secure the departure of the aircraft where the crew member is arrested or the departure of the aircraft is prevented by the relevant authorities in connection with Bodily Injury or Property Damage as insured hereunder. Amounts payable under this paragraph 3.8. are payable within the combined single limit as set forth in the Insurance Schedule. 3.9. EMERGENCY MEDICAL SERVICES: The Insurers agree that in respect of emergency medical services provided on aircraft to hold harmless and waive rights of subrogation against and include as additional insureds physicians, surgeons, nurses, medical technicians and the like who voluntarily provide medical services to OO Airlines passengers or crew where at the request of the Insured on a first aid basis. SECTION FOUR 4. EXCESS LIABILITY 4.1. COVER:

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4.1.1.To pay on behalf of the Insured all sums which the Insured shall become legally liable to pay as damages for Bodily Injury and/or Property Damage arising from the risks and hazards covered by the underlying Insurance(s) as set forth in the Insurance Schedule caused by an Occurrence happening during the Period of Insurance. The Insurers will only pay up to the amount stated in paragraph 4.3.3. of the Insurance Schedule excess of an Ultimate Net Loss to the Insured of the Limit of Liability of the relevant underlying Insurance. 4.2. CONDITIONS: 4.2.1.Incurring of Costs: In the event of a claim or claims arising which appear likely to exceed the underlying limits, no Costs shall be incurred by the Insured without the consent of the Insurers. 4.2.2.Apportionment of Costs: Costs incurred by or on behalf of the Insured with the consent of the Insurers, and for which the Insured is not covered by the underlying insurers, shall be apportioned as follows 4.2.2.1.Should any claim or claims become adjustable prior to the commencement of trial for not more than the underlying limit(s) then no Costs shall be payable by the Insurers. 4.2.2.2.Should, however, the amount for which the said claim or claims may be so adjustable exceed the underlying limit(s) then the Insurers shall contribute to the Costs incurred by or on behalf of the Insured in the ratio that their proportion of the Ultimate Net Loss as finally adjusted bears to the whole amount of such Ultimate Net Loss. 4.2.2.3.In the event that the Insured elects not to appeal a judgement in excess of the underlying limit(s) the Insurers may elect to conduct such appeal at their own cost and expense and shall be liable for the taxable court costs and interest incidental thereto, but in no event shall the total liability of the Insurers exceed their limit(s) of liability as provided for herein, plus the expenses of such appeal. 4.2.3.Application of Recoveries All recoveries or payments recovered or received subsequent to a loss settlement under this section shall be applied as if recovered or received prior to such settlement and all necessary adjustments shall then be made between the Insured and the Insurers, provided always that nothing herein shall be construed to mean that losses under this section are not payable until the Insured’s Ultimate Net Loss has been finally ascertained. 4.2.4.Attachment of Liability: Liability to pay under this section shall not attach unless and until the underlying insurers shall have admitted liability for the underlying limit(s) or unless and until the Insured has by final judgement been adjudged to pay an amount which exceeds such underlying limits and then only after the underlying insurers have paid or have been held liable to pay the full amount of the underlying limit(s). 4.2.5.Maintenance of Underlying Insurance: It is a condition of this insurance that the underlying insurance(s) shall be maintained in full effect during the Period of Insurance, failing which coverage under this section shall thereupon cease, except for any reduction of any aggregate limits contained therein solely by payment of claims in respect of Occurrences happening during the Period of Insurance. This section is subject to the same warranties, terms, conditions, definitions and exclusions (except as regards the premium, the obligation to investigate and defend, the renewal agreement, if any, the amount and limits of liability other than the deductible or any self insurance provisions, where applicable and except

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as otherwise provided herein) as are contained in or may be added to the underlying Insurance(s). 4.3. EXCLUSION: This Insurance does not apply to any loss suffered by the Insured as a result of the inability, refusal or failure to pay of the underlying insurers for any reason whatsoever including, without limitation, any financial impairment, insolvency or liquidation. SECTION FIVE 5. GENERAL EXCLUSIONS The following general exclusions apply to all sections of this Insurance except as stated: 5.1. LIABILITY ASSUMED UNDER CONTRACT OR AGREEMENT: (not applicable to Section Four) This Insurance does not cover liability assumed by the Insured under a contract or agreement except as otherwise provided herein or unless such liability would have attached to the Insured even in the absence of such contract or agreement. 5.2. NUCLEAR RISKS EXCLUSION CLAUSE: 5.2.1.This Insurance does not cover : 5.2.1.1.loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss 5.2.1.2.any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from: 5.2.1.2.1.the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof; 5.2.1.2.2.the radioactive properties of, or a combination of radioactive properties with toxic, explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto; 5.2.1.2.3.ionizing radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever. 5.2.2.It is understood and agreed that such radioactive material or other radioactive source in paragraph 5.2.1.2.2. and 5.2.1.2.3. above shall not include: 5.2.2.1.depleted uranium and natural uranium in any form; 5.2.2.2.radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, educational or industrial purpose. 5.2.3.This Insurance, 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: 5.2.3.1.the Insured under this Insurance is also an insured or an additional insured under any other insurance, including any nuclear energy liability insurance; or

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5.2.3.2.any person or organization is required to maintain financial protection pursuant to legislation in any country; or 5.2.3.3.the Insured under this Insurance is, or had this Insurance not been issued would be, entitled to indemnification from any government or agency thereof. 5.2.4.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 Insurance) be covered, provided that: 5.2.4.1.in the case of any claim in respect of radioactive material in the course of carriage as cargo, including storage or handling incidental thereto, such carriage shall in all respects have complied with the full International Civil Aviation Organization “Technical Instructions for the Safe Transport of Dangerous Goods by Air”, unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation; 5.2.4.2.this Insurance shall only apply to an incident happening during the Period of Insurance 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; 5.2.4.3.in the case of any claim for the loss of or destruction of or damage to or loss of use of an aircraft caused by or contributed to by radioactive contamination, the level of such contamination shall have exceeded the maximum permissible level set out in the following scale:

Emitter

(IAEA Health and Safety Regulations)

Beta, gamma and low toxicity alpha emitters

All other emitters

Maximum permissible level of non-fixed radioactive surface contamination

(Averaged over 300cm²)

Not exceeding 4 Becquerels/cm² (10-4 microcuries/cm²)

Not exceeding 0.4 Becquerels/cm²

(10-5 microcuries/cm²)

5.2.4.4.the cover afforded hereby may be cancelled at any time by the Insurers giving seven days’ notice of cancellation. AVN38B 5.3. WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE (AVIATION): This Insurance does not cover claims caused by 5.3.1.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. 5.3.2.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. 5.3.3.Strikes, riots, civil commotions or labour disturbances. 5.3.4.Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional. 5.3.5.Any malicious act or act of sabotage.

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5.3.6.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. 5.3.7.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 Insured. Furthermore this Insurance 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 Insurance, 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). AVN48B 5.4. NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE: 5.4.1.This Insurance does not cover claims directly or indirectly occasioned by, happening through or in consequence of: 5.4.1.1.noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, 5.4.1.2.pollution and contamination of any kind whatsoever, 5.4.1.3.electrical and electromagnetic interference, 5.4.1.4.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. 5.4.2.With respect to any provision in the Insurance concerning any duty of the Insurers to investigate or defend claims, such provision shall not apply and the Insurers shall not be required to defend 5.4.2.1.claims excluded by Paragraph 5.4.1. or 5.4.2.2.a claim or claims covered by the Insurance when combined with any claims excluded by Paragraph 5.4.1. (referred to below as “Combined Claims”). 5.4.3.In respect of any Combined Claims, the Insurers shall (subject to proof of loss and the limits of the Insurance) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Insurance: 5.4.3.1.damages awarded against the Insured and 5.4.3.2.defence fees and expenses incurred by the Insured. 5.4.4.Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Insurance. AVN46B This paragraph 5.4.4. is not applicable to Section One or Section Two or to passengers, baggage, cargo or mail. Paragraph 5.4.1.2. above is not applicable to pollution or contamination of goods or products sold or supplied by the Insured.

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5.5. DATE RECOGNITION EXCLUSION CLAUSE: This Insurance does not cover any claim, damage, injury, loss, cost, expense or liability (whether in contract, tort, negligence, product liability, misrepresentation, fraud or otherwise) of any nature whatsoever arising from or occasioned by or in consequence of (whether directly or indirectly and whether wholly or partly): 5.5.1.the failure or inability of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) accurately or completely to process, exchange or transfer year, date or time data or information in connection with any change of year, date or time; whether on or before or after such change of year, date or time; 5.5.2.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; 5.5.3.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 Insurance concerning any duty of Insurers to investigate or defend claims shall not apply to any claims so excluded. AVN2000A 5.6. 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. AVN72 5.7 ASBESTOS EXCLUSION CLAUSE: This Insurance does not cover any claims of any kind whatsoever directly or indirectly relating to, arising out of or in consequence of: 5.7.1.the actual, alleged or threatened presence of asbestos in any form whatsoever, or any material or product containing, or alleged to contain, asbestos; or 5.7.2.any obligation, request, demand, order, or statutory or regulatory requirement that any Insured or others test for, monitor, clean up, remove, contain, treat, neutralize, protect against or in any other way respond to the actual, alleged or threatened presence of asbestos or any material or product containing, or alleged to contain, asbestos. However, this exclusion shall not apply to any claim caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation. Notwithstanding any other provisions of this Insurance, Insurers will have no duty to investigate, defend or pay defence costs in respect of any claim excluded in whole or in part under paragraphs 5.7.1. or 5.7.2. hereof.

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ALL OTHER TERMS AND CONDITIONS OF THE INSURANCE REMAIN UNCHANGED. 2488AGM00003 This paragraph 5.7. is not applicable to Section One or Section Two. SECTION SIX 6. GENERAL PROVISIONS AND CONDITIONS (Not applicable to Section Four unless so stated) 6.1. DOCUMENTATION OF PASSENGERS, BAGGAGE AND CARGO: The Insured shall take all reasonable steps to ensure that all passengers, personal effects, passenger baggage and cargo are carried subject to passenger tickets and/or air waybills limiting the carrier’s liability in respect of Bodily Injury or Property Damage to the amounts as prescribed by the applicable law or as otherwise permitted by this Insurance in respect of the carriage to be performed. Nevertheless, this condition shall not apply to authorised observers, nor to prospective employees requiring flight test prior to employment. The coverage provided by this Insurance shall not be prejudiced where passenger tickets or air waybills are incorrectly issued or are not issued, even when there is a statutory requirement to do so. 6.2. CERTIFICATE OF AIRWORTHINESS, AIR NAVIGATION REGULATIONS: The Insured shall take all reasonable precautions to ensure that: 6.2.1.at the commencement of each flight the aircraft shall have a current and valid Certificate of Airworthiness or other permit to fly issued by a competent authority and shall be airworthy and 6.2.2.all applicable Government regulations and instructions for civil aviation are complied with and 6.2.3.the aircraft operates in accordance with the weight restriction imposed by such aircraft’s Certificate of Airworthiness. 6.3. CONTRACTUAL AGREEMENTS: Notwithstanding the provisions of paragraph 5.1. of Section Five : 6.3.1.It is agreed that this Insurance applies to contracts and/or agreements entered into by the Insured which were agreed by the insurers of the Insurance(s) of which this is a renewal, new contracts in accordance with IATA standard agreements and any other contract or agreement entered into by the Insured as are normal to the aviation operations conducted by the Insured other than those relating to assumption of gross negligence or wilful misconduct of the other party. 6.3.2.It is agreed that existing agreements (which were either endorsed onto and/or agreed by the insurers of the Insurance(s) of which this is a renewal) on the basis of AVN67A/B/C and AVN99 are automatically covered subject to an additional premium of receipt of which is hereby acknowledged and with the effective date of such endorsements amended to the inception date hereon. 6.3.3.Insurers agree to automatically include requirements of new aircraft finance and/or lease requirements subject Airline Finance/Lease Contract Endorsement AVN67B or AVN67C provisions. All such agreements shall be subject to an additional premium of per agreement, receipt of which is hereby acknowledged by underwriters hereon, and such additional premiums are deemed included within the premium charged for this Insurance.

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6.3.4.Other contracts or agreements entered into by the Insured are subject to the agreement of Insurers being obtained within 7 days of entering into such contract or agreement. 6.3.5.It is agreed that nothing contained herein shall be construed to extend the coverage of this Insurance to risks not otherwise covered hereunder and the inclusion of all such contracts or agreements shall be subject to the terms, conditions, limitations and exclusions of this Insurance unless otherwise specifically agreed by the Insurers. 6.4. SEVERABILITY OF INTEREST: The inclusion of more than one person, partnership, corporation, organisation, firm or entity as an Insured under this Insurance shall not in any way affect the rights of any such person, partnership, corporation, organisation, firm or entity in respect of any claim, demand, suit or judgement made or brought by or in favour of any other Insured. It is the intention of this Insurance to protect each such person, partnership, corporation, organisation, firm or entity in respect of any claim, demand, suit or judgement in the same manner as though a separate Insurance had been issued to each. Other than in respect of the …… named subsidiaries this condition will not apply to any claim arising from physical loss of or damage to aircraft or Spares as insured under sections one or two. 6.5. LIMITATION OF LIABILITY: (also applicable to Section Four) Notwithstanding the inclusion herein of more than one Insured, whether by endorsement or otherwise, the total liability of the Insurers in respect of any or all Insureds shall not exceed the limits of liability set forth in the Insurance Schedule. 6.6. ADDITIONS AND DELETIONS OF AIRCRAFT, AGREED VALUE, PASSENGER SEATING AND FLIGHT STATUS AMENDMENTS 6.6.1.The insurance afforded by this Insurance is automatically extended to include at pro rata additional premium further aircraft added during the Period of Insurance provided such aircraft are owned or operated by the Insured but not to exceed the maximum agreed value and the maximum passenger seating capacity, both as set forth in the Insurance Schedule. 6.6.2.The inclusion of additional aircraft of greater values and seating capacities shall be subject to prior agreement and rating by the Insurers. 6.6.3.Aircraft which have been sold or disposed of shall be deleted from this Insurance and the Insured shall be entitled to pro rata return of premium provided (with respect only to Section One) no claim has arisen and become payable under Section One of this Insurance in respect of such aircraft and that this Insurance is not cancelled by virtue of such deletion. 6.6.4.The Insurers agree to accept increases and decreases in the agreed values of the aircraft insured hereunder and amendments to the declared passenger seating capacity of aircraft insured hereunder with pro rata premium adjustment (as applicable) provided that the revised agreed value does not exceed the maximum agreed value and the revised passenger seating capacity does not exceed the maximum capacity, both as set forth in the Insurance Schedule. 6.6.5.Advice of the addition or deletion of any aircraft or amendment to the agreed value or declared seating capacity under the provisions of paragraphs 6.6.1., 6.6.3. and 6.6.4. respectively shall be given to the Insurers or their representatives on expiration of this Insurance. 6.6.6.It is agreed to include changes in flight status subject to advice to Insurers at expiry in respect of changes from Flight to Ground. 6.7. DUE DILIGENCE: (also applicable to Section Four)

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The Insured shall use due diligence and do and concur in doing everything reasonably practicable to avoid or diminish any loss hereon, but shall not make any admission of liability or payment or offer or promise of payment without the written consent of the Insurers. In respect of the insurance afforded by sections one and two of this Insurance, when loss occurs, the Insured shall take all reasonable measures to protect the property insured thereby, whether or not the loss is covered by this Insurance, and any further loss due to the Insured's failure to do so shall not be recoverable under this Insurance; reasonable expense incurred in affording such protection, provided the loss is covered by this Insurance, shall be deemed incurred at the Insurers’ request. 6.8. NOTICE OF EVENT LIKELY TO GIVE RISE TO A CLAIM: (also applicable to Section Four) Other than claims falling within paragraph 6.20. of this Section immediate notice of any event likely to give rise to a claim under this Insurance shall be given to the person or organisation set forth in the Insurance Schedule to whom the Insured shall furnish full particulars in writing of such event and shall forward immediately notice of any claim by a third party or passenger and any letters or documents relating thereto and shall give notice of any impending prosecution. The Insured shall render such further information and assistance as the Insurers may reasonably require and shall not act in any way to the detriment or prejudice of the interests of the Insurers. 6.9. SUBROGATION: Except as provided for in paragraph 6.3. of this section the Insurers shall be entitled, if they so desire, to prosecute in the name of the Insured for their own benefit any claim for indemnity or damages or otherwise against any third party and shall have full discretion in the conduct of any proceedings, including the right to abandon the same at any time. The Insured shall at all times give all such information and assistance as the Insurers may reasonably require in connection with any such proceedings. 6.10. FRAUDULENT CLAIM: (also applicable to Section Four) If the Insured shall make any claim knowing the same to be false or fraudulent as regards amount or otherwise, this Insurance shall become void and all claims hereunder shall be forfeited. 6.11. ALTERATION OF RISK: (also applicable to Section Four) Should there be any material 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 Insurers. Inadvertent failure to do so shall not invalidate cover under this Insurance which shall continue at terms to be agreed when any such change is made known. 6.12. CANCELLATION: (also applicable to Section Four) This Insurance may be cancelled at the request of the Insured at any time by written notice to the Insurers stating when thereafter such cancellation shall be effective. This Insurance may be cancelled by the Insurers by giving 30 (thirty) days notice in writing to the Insured at the address as shown in this Insurance. Such notice shall apply with effect from the time and date of its receipt by either the Insured or the Insurers. In the event that this Insurance is cancelled by the Insured the Insurers shall receive or retain that proportion of the premium for this Insurance, calculated in accordance with the attached short rate scale or the earned premium for the period that the Insurance has been in force calculated on the basis set forth in the Insurance Schedule, whichever the greater.

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In the event that this Insurance is cancelled by the Insurers, the Insurers shall receive or retain the pro rata proportion of the premium or the earned premium for the period that the Insurance has been in force calculated on the basis set forth in the Insurance Schedule, whichever the greater. Nothing contained within the foregoing shall override any minimum premium provision contained in the Insurance Schedule. 6.13. OTHER INSURANCE: (also applicable to Section Four) In respect of Sections One, Three and Four: If there is other insurance against a claim covered by this Insurance (other than underlying insurance or insurance that is specifically intended to be excess of this Insurance), the Insurers shall not be liable under this Insurance for a greater proportion of such claim than the amount of insurance provided by this Insurance bears to the total amount of all valid and collectible insurance against such claim. Notwithstanding the above, in respect of liabilities covered under Section Three and for which cover is also provided under Section Four, Section Three of this Insurance shall apply in excess of the underlying insurance subject to a limit of the difference between amounts recoverable under the underlying insurance and the limit of the Insurer’s liability as set forth in paragraph 3.3.1. of the Insurance Schedule. In respect of Section Two: This Insurance shall be primary and without right of contribution from any other insurance available to the Insured. 6.14. ARBITRATION AND JURISDICTION: (also applicable to Section Four) This Insurance is governed by and construed in accordance with the law of Taiwan Republic of China. In the event of any dispute or difference between the Insured and the Insurers arising out of this Insurance if such dispute or difference cannot be resolved by amicable settlement within 90 days of a request for such agreement by either party it may be resolved by arbitration or litigation if the parties do not mutually agree to arbitration procedures. Where both parties have agreed to refer a dispute or difference to arbitration the statutory provisions for arbitration, which are in force at the time in Taiwan Republic of China, shall be applied. In the event of litigation both parties agree to submit to the exclusive jurisdiction of the Courts of Taiwan Republic of China. 6.15. BREACH OF AIR NAVIGATION REGULATIONS: Any breach or contravention of Air Navigation and/or Airworthiness orders and requirements and/or regulations relating to the operation of aircraft issued by any competent authority shall not invalidate a claim by the Insured under this Insurance as long as the breach or contravention occurs without the knowledge and consent of the Insured. However, the individual causing such breach or contravention shall not be entitled to indemnity hereunder. 6.16. ASSIGNMENT: (also applicable to Section Four) This Insurance may not be assigned in whole or in part except with the consent of the Insurers verified by endorsement and issued to form part of this Insurance; if, however, the Insured shall be adjudged bankrupt or insolvent within the Period of Insurance, this Insurance unless cancelled, shall, if written notice be given to the Insurers within sixty days after the date of such adjudication, insure the Insured’s legal representative as the Insured.

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6.17. CONFLICTING STATUTES: The terms of this Insurance which are in conflict with the statutes or regulations of any jurisdiction wherein this Insurance has application are hereby amended to conform with such statutes or regulations insofar as they relate to aviation operations insured by this Insurance. If the Insurers are called upon to provide coverage to the Insured in compliance with this condition including the defence and legal costs associated therewith and if by reason of any other terms, conditions, limitations and exclusions of the Insurance such coverage would not have been provided except for this condition then the Insured will reimburse the Insurers for such payments made in providing coverage under this condition. 6.18. INADVERTENT ERRORS OR OMISSIONS: Inadvertent errors, omissions or failure to give notice to the Insurers as herein required shall not relieve the Insurers of liability under this Insurance, provided that any such error, omission or failure shall be corrected as soon as discovered. 6.19. REASONABLE ACTS: The coverage provided by this Insurance shall not be invalidated by any reasonable act(s) by or on behalf of or at the direction of the Insured for the purpose of protecting persons or property. 6.20. SETTLEMENT AUTHORITY: OOAirlines are authorised to settle all passenger, baggage and cargo and third party liability claims (provided that they are within convention limits) up to in excess of any applicable deductible. Settlements to be submitted to Insurers by monthly bordereau. Claims in excess of this authority should be referred to: OO have authority up to excess of any applicable deductible to settle passengers, baggage, cargo and third party claims which have been referred to them. SECTION SEVEN DEFINITIONS “Insured” means the organisation as set forth in paragraph 1. of the Insurance Schedule and shall in addition, in respect of Section Three, include for their respective rights and interests any directors or employees of the Insured as shown in paragraph 1. of the Insurance Schedule acting within their capacity as such, any pilot or member of the crew of the aircraft whilst acting in his capacity as such, and any person on board the aircraft assisting, supervising or instructing in or about the operation of the aircraft. The term “Insured” also includes any person or organisation included as an additional insured under the provisions of paragraph 6.3. of Section Six but only to the extent provided thereby. However, as respects Section Four of this Insurance, the term “Insured” means the Insured as set forth in paragraph 1. of the Insurance Schedule and, at the option of that Insured, includes any person or organisation who is included as an insured under an underlying Insurance to which Section Four applies. “Bodily Injury” means bodily injury, mental anguish, shock or fright, sickness or disease sustained by any person including death at any time resulting therefrom. However when used with reference to Section Four the term “Bodily Injury” shall have the same meaning as is attributed to it in the underlying Insurance(s).

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“Costs” (only applicable to Section Four) means interest accruing after entry of judgement, investigation, adjustment and legal expenses (excluding, however, all office expenses of the Insured, all salaries of the Insured’s employees and general retainer fees for counsel normally paid by the Insured). “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. A rotorcraft will be deemed to be in flight when its rotors are in motion. “Occurrence” means an accident, happening or event or a continuous or repeated exposure to conditions occurring during the Period of Insurance which results in Bodily Injury and/or Property Damage neither expected nor intended from the standpoint of the Insured. All Bodily Injury and/or Property Damage arising out of substantially the same general conditions shall be deemed to arise out of one Occurrence. However as respects Section Four “Occurrence” shall have the same meaning as is attributed to it in the underlying Insurance(s). Notwithstanding the foregoing for the purpose of this Insurance all liability arising out of substantially the same general conditions shall be deemed to arise from one Occurrence. “Products Hazard” means any goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the Insured after such goods or products have ceased to be in the possession of or under the control of the Insured. The supply of food or drink at the premises or on the aircraft to which this Insurance applies shall be deemed not to be part of the Products Hazard. “Property Damage” means (a) physical damage to or destruction of tangible property including all resultant loss of use of such property and with respect to baggage and cargo shall include physical damage or destruction occasioned by delay and/ or (b) loss of use of tangible property which has not been physically damaged or destroyed provided such loss of use is caused by an Occurrence. However when used with reference to Section Four the term “Property Damage” shall have the same meaning as is attributed to it in the underlying Insurance(s). “Reconstitution Costs” means (a) Costs incurred for a technical audit of the aircraft, even if such audit shows there to be no technical deficiencies. (b) Costs of any maintenance and/or overhaul which is found to be necessary to bring the Technical Records to the standard required by the airworthiness authority under which the aircraft is registered. (c) Costs of updating or reconstituting the actual Technical Records. (d) The expense of any flights necessary to position the aircraft for any technical audit, maintenance or overhaul as insured hereby and any associated test Flights. For the purpose of this paragraph (d), “expenses” means: (1) the cost of engaging and positioning the statutory minimum flight crew for the purposes of the Flight. (2) the cost of fuel, lubricants and hydraulics necessarily incurred for the purposes of the Flight. (3) all airport dues and air navigation charges incurred during the course of the Flight, but excluding any fees incurred subsequent to landing at the final destination airport. “Taxiing” means movement of the aircraft under its own power other than in Flight. “Technical Records” means all records, both current and historical, which verify: (a) compliance with all applicable regulations applicable to the aircraft or Spares.

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(b) accomplishment of all maintenance performed on the aircraft or Spares. (c) total time (hours and cycles) and time since overhaul on all time controlled and life limited components of the aircraft or Spares. “Ultimate Net Loss” (only applicable to Section Four) means the amount payable in settlement of the liability of the Insured after making deductions for all recoveries and for other valid and collectible insurances, excepting however the underlying Insurance(s)and shall exclude all expenses and Costs. APPENDIX ONE SHORT RATE CANCELLATION TABLE

DAYS INSURANCE IN FORCE

PERCENT OF ONE YEAR PREMIUM

DAYS INSURANCE IN FORCE

PERCENT OF ONE YEAR PREMIUM

1 2 3-4 5-6 7-8 9-10 11-12 13-14 15-16 17-18 19-20 21-22

5 6 7 8 9 10 11 12 13 14 15 16

154-156 157-160 161-164 165-167 168-171 172-175 176-178 179-182 (6 months) 183-187 188-191 192-196 197-200

53 54 55 56 57 58 59 60 61 62 63 64

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23-25 26-29 30-32 (1 month) 33-36 37-40 41-43 44-47 48-51 52-54 55-58 59-62 (2 months) 63-66 67-69 70-73 74-76 77-80 81-83 84-87 88-91 (3 months) 92-94 95-98 99-102 103-105 106-109 110-113 114-116 117-120 121-124 (4 months) 125-127 128-131 132-135 136-138 139-142 143-146 147-149 150-153 (5 months)

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

201-205 206-209 210-214 (7 months) 215-218 219-223 224-228 229-232 233-237 238-241 242-246 (8 months) 247-250 251-255 256-260 261-264 265-269 270-273 (9 months) 274-278 279-282 283-287 288-291 292-296 297-301 302-305 (10 months) 306-310 311-314 315-319 320-323 324-328 329-332 333-337 (11 months) 338-342 343-346 347-351 352-355 356-360 361-365 (12 months)

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

APPENDIX TWO 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 Insurance is in full force and effect and it is further agreed that the following provisions are specifically endorsed to the Insurance: 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 Insurance Deductible) shall be made to, or to the order of the Contract Party(ies).

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In respect of any other claim, settlement (net of any relevant Insurance 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 Insurance 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 Insurance. 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. 3. Under ALL Insurances 3.1 The Contract Party(ies) are included as Additional Insured(s). 3.2 The cover afforded to each Contract Party by the Insurance in accordance with this Endorsement shall not be invalidated by any act or omission (including misrepresentation and non-disclosure) of any other person or party which results in a breach of any term, condition or warranty of the Insurance PROVIDED THAT the Contract Party so protected has not caused, contributed to or knowingly condoned the said act or omission. 3.3 The provisions of this Endorsement apply to the Contract Party(ies) solely in their capacity as financier(s)/lessor(s) in the identified Contract(s) and not in any other capacity. Knowledge that any Contract Party may have or acquire or actions that it may take or fail to take in that other capacity (pursuant to any other contract or otherwise) shall not be considered as invalidating the cover afforded by this Endorsement. 3.4 The Contract Party(ies) shall have no responsibility for premium and Insurers shall waive any right of set-off or counterclaim against the Contract Party(ies) except in respect of outstanding premium in respect of the Equipment. 3.5 Upon payment of any loss or claim to or on behalf of any Contract Party(ies), Insurers shall to the extent and in respect of such payment be thereupon subrogated to all legal and equitable rights of the Contract Party(ies) indemnified hereby (but not against any Contract Party). Insurers shall not exercise such rights without the consent of those indemnified, such consent not to be unreasonably withheld. At the expense of Insurers such Contract Party(ies) shall do all things reasonably necessary to assist the Insurers to exercise said rights. 3.6 Except in respect of any provision for Cancellation or Automatic Termination specified in the Insurance or any endorsement thereof, cover provided by this Endorsement may only be cancelled or materially altered in a manner adverse to the Contract Party(ies) 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. Such notice will NOT, however, be given at normal expiry date of the Insurance or any endorsement. EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT:

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1. THE CONTRACT PARTY(IES) ARE COVERED BY THE INSURANCE SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF. 2. THE INSURANCE SHALL NOT BE VARIED BY ANY PROVISIONS CONTAINED IN THE CONTRACT(S) WHICH PURPORT TO SERVE AS AN ENDORSEMENT OR AMENDMENT TO THE INSURANCE. SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT 1. Equipment: 2. Insurance Deductible applicable to physical damage to the Equipment: 3. (a) Contract Party(ies): AND (b), in addition, in respect of Legal Liability Insurances: 4. Contract(s): 5. Effective Date: 6. Additional Premium: 7. Appointed Broker: AVN67B AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT It is noted that the Contract Party(ies) have an interest or interests in respect of the Equipment under the Contract(s). Accordingly, with respect to losses occurring during the period from the Effective Date until (i) the date and time at which the Insurance expires or, if earlier, (ii) the date and time at which the Insured has no further obligation to insure the Equipment under the Contract(s), as notified in writing by the Designated Contract Party to the Insurers (via the Appointed Broker, if any) (such notification to be given promptly and in any event within 30 days after such date), and in consideration of the Additional Premium, it is confirmed in respect of the said interest(s) of the Contract Party(ies) that the Insurance afforded by the Insurance is in full force and effect, and it is further agreed that the following provisions are specifically endorsed to the Insurance: 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 Insurance Deductible) shall be made to, or to the order of the Contract Party(ies). In respect of any other claim, settlement (net of any relevant Insurance 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.

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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 Insurance 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 Insurance. 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 any Contract Party with respect to claims arising out of its legal liability as manufacturer of, or performer of maintenance, repairs or other operational activities on, the Equipment. 2.4 The coverage afforded by the Insurance is amended by this Endorsement to provide coverage in respect of the liability of the Contract Party(ies) to the pilots and crew of the Equipment (excluding liability to those pilots and crew employed by the Contract Party(ies)), on the basis that for the purposes of providing such coverage under this Endorsement, such pilots and crew shall be deemed to be passengers. 3. Under the Hull and Aircraft Spares Insurances and the Legal Liability Insurances 3.1 The Contract Party(ies) are included as Additional Insured(s). 3.2 The cover afforded to each Contract Party by the Insurance in accordance with this Endorsement shall not be invalidated by any act or omission (including misrepresentation and non-disclosure) of any other person or party which results in a breach of any term, condition or warranty of the Insurance PROVIDED THAT the Contract Party so protected has not caused, contributed to or knowingly condoned the said act or omission. 3.3 Nevertheless, no Contract Party shall be entitled to claim a loss by theft or alleged theft of the Equipment under the hull insurances by reason of the actual or alleged dispossession or refusal or failure to redeliver the Equipment by the Insured or any other Contract Party, but this shall not exclude any claim by a Contract Party by reason of loss of or damage to the Equipment (other than loss by such theft) during the period of this Endorsement. 3.4 The provisions of this Endorsement apply to each Contract Party solely in its capacity as financier, lessor or lease servicer or manager under the Contract(s) and not in any other capacity. Knowledge that any Contract Party may have or acquire or actions that it may take or fail to take in that other capacity (pursuant to any other contract or otherwise) shall not be considered as invalidating the cover afforded by this Endorsement. For this purpose “lease servicer or manager” means a Contract Party who is appointed by one or more other Contract Party(ies) to provide services relating to the Equipment in connection with the Contract(s) (other than services of a kind specified in paragraph 2.3 above). 3.5 The Contract Party(ies) shall have no responsibility for premium, and Insurers shall waive any right of set-off or counterclaim against the Contract Party(ies) except in respect of outstanding premium in respect of the Equipment. 3.6 Upon payment of any loss or claim to or on behalf of any Contract Party(ies), Insurers shall to the extent and in respect of such payment be thereupon subrogated to all legal and equitable rights of the Contract Party(ies) indemnified hereby (but not against any Contract Party). Insurers shall not exercise such rights without the consent of those indemnified, such consent not to be unreasonably withheld. At the expense of Insurers such Contract Party(ies) shall do all things reasonably necessary to assist the Insurers to exercise said rights. 3.7 Except in respect of any provision for Cancellation or Automatic Termination specified in the

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Insurance or any endorsement thereof, cover provided by this Endorsement may only be cancelled or materially altered in a manner adverse to the Contract Party(ies) by the Insurers giving not less than 30 days’ notice in writing to the Contract Party(ies) (via the Appointed Broker, if any). Notice shall be deemed to commence from the date such notice is given by the Insurers. Such notice will NOT, however, be given at normal expiry date of the Insurance or any endorsement. EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT: 1. THE CONTRACT PARTY(IES) ARE COVERED BY THE INSURANCE SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF. 2. THE INSURANCE SHALL NOT BE VARIED BY ANY PROVISIONS CONTAINED IN THE CONTRACT(S) WHICH PURPORT TO SERVE AS AN ENDORSEMENT OR AMENDMENT TO THE INSURANCE. SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT 1. Equipment: 2. Insurance Deductible applicable to physical damage to the Equipment: 3. (a) Contract Party(ies): AND (b), in addition, in respect of Legal Liability Insurances: 4. Contract(s): and references in this Endorsement to “the Contract(s)” mean the contract(s) listed above, as amended or supplemented from time to time. 5. Designated Contract Party: 6. Effective Date: 7. Additional Premium: 8. Appointed Broker: AVN67C APPENDIX THREE AIRCRAFT FINANCE/LEASE CONTRACT - CONTINUING LIABILITY ENDORSEMENT It is noted that the Contract Party(ies) had an interest or interests in respect of the Equipment under the Contract(s) when the Equipment was being operated by the Insured pursuant to the Contract(s). Accordingly, in respect of the said interest(s) of the Contract Party(ies), with respect to losses occurring during the period from the Effective Date until (i) the date and time at which the Insurance expires or, if earlier, (ii) the date and time at which the Insured has no further obligation to insure the said interest(s) of the Contract Party(ies), as notified by the Designated Contract Party to the Insurers (via the Appointed Broker, if any) (such notification to be given promptly and in any event within 30 days after such date), and in consideration of the Additional Premium, it is confirmed that, as required by the Contract(s), the Legal Liability Insurance afforded by the Insurance is in full force and effect, and it is further agreed that the following provisions are specifically endorsed to the Legal Liability Insurance section of the Insurance: 1. The Contract Party(ies) are included as Additional Insured(s). 2. Subject to the provisions of this Endorsement, the Insurance shall operate in all respects as if a

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separate Insurance had been issued covering each party insured hereunder. 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 Insurance. 3. 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). 4. This Endorsement does not provide coverage for any Contract Party with respect to claims arising out of its legal liability as manufacturer of, or performer of maintenance, repairs or other operational activities on, the Equipment. 5. The coverage afforded by the Insurance is amended by this Endorsement to provide coverage in respect of the liability of the Contract Party(ies) to the pilots and crew of the Equipment (excluding liability to those pilots and crew employed by the Contract Party(ies)), on the basis that for the purposes of providing such coverage under this Endorsement, such pilots and crew shall be deemed to be passengers. 6. The cover afforded to each Contract Party by the Insurance in accordance with this Endorsement shall not be invalidated by any act or omission (including misrepresentation and non-disclosure) of any other person or party which results in a breach of any term, condition or warranty of the Insurance PROVIDED THAT the Contract Party so protected has not caused, contributed to or knowingly condoned the said act or omission. 7. The provisions of this Endorsement apply to each Contract Party solely in its capacity as former financier, former lessor or former lease servicer or manager under the Contract(s), and not in any other capacity. Knowledge that any Contract Party may have or acquire or actions that it may take or fail to take in that other capacity (pursuant to any other contract or otherwise) shall not be considered as invalidating the cover afforded by this Endorsement. For this purpose “lease servicer or manager” means a Contract Party who is appointed by one or more other Contract Party(ies) to provide services relating to the Equipment in connection with the Contract(s) (other than services of a kind specified in paragraph 4 above). 8. The Contract Party(ies) shall have no responsibility for premium, and Insurers shall waive any right of set-off or counterclaim against the Contract Party(ies). 9. Upon payment of any loss or claim to or on behalf of any Contract Party(ies), Insurers shall to the extent and in respect of such payment be thereupon subrogated to all legal and equitable rights of the Contract Party(ies) indemnified hereby (but not against any Contract Party). Insurers shall not exercise such rights without the consent of those indemnified, such consent not to be unreasonably withheld. At the expense of Insurers such Contract Party(ies) shall do all things reasonably necessary to assist the Insurers to exercise said rights. 10. Except in respect of any provision for Cancellation or Automatic Termination specified in the Insurance or any endorsement thereof, cover provided by this Endorsement may only be cancelled or materially altered in a manner adverse to the Contract Party(ies) by the Insurers giving not less than thirty (30) days’ notice in writing to the Contract Party(ies) (via the Appointed Broker, if any). Notice shall be deemed to commence from the date such notice is given by the Insurers. Such notice will NOT, however, be given at normal expiry date of the Insurance or any endorsement. EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT: 1. THE CONTRACT PARTY(IES) ARE COVERED BY THE INSURANCE SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF. 2. THE INSURANCE SHALL NOT BE VARIED BY ANY PROVISIONS CONTAINED IN THE CONTRACT(S) WHICH PURPORT TO SERVE AS AN ENDORSEMENT OR AMENDMENT TO THE INSURANCE.

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SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT 1. Equipment: 2. Contract Party(ies): 3. Designated Contract Party: 4. Contract(s): and references in this Endorsement to “the Contract(s)” mean the contract(s) listed above, as amended or supplemented from time to time. 5. Effective Date: 6. Appointed Broker: 7. Additional Premium: AVN99 ENDORSEMENTS NUMBER ONE D.o.T. 14 CFR PART 205 (HEREINAFTER CALLED “PART 205”) AIRCRAFT ACCIDENT LIABILITY INSURANCE IT IS UNDERSTOOD AND AGREED THAT: 1. The Insurance to which this endorsement is attached is hereby amended to provide coverage in compliance with the provisions of Part 205. 2. Such coverage shall be within the limits of liability in the Insurance and not in addition to or in excess thereof. 3. Such coverage shall continue until cancelled by the Insurers or their authorised representative giving the appropriate notice. 4. Unless the Insurance otherwise provides the following exclusions not prohibited by the provisions of Part 205 shall apply: (i) War Exclusions Clause AVN48B paragraphs (a) and (b) or equivalent clause(s). (ii) Noise and Pollution and Other Perils Exclusion Clause AVN46B or equivalent clause(s). (iii) Nuclear Risks Exclusion Clause AVN38B or equivalent clause(s). (iv) Bodily injury to or sickness disease or death of any employee arising out of and in the course of his/her employment. (v) Injury to or destruction of property owned rented leased or loaned to or occupied or used by the Insured. 5. If the Insurers are called upon to provide coverage to the Insured in compliance with Part 205 including

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the defence and legal costs associated therewith and if by reason of the terms conditions limitations and exclusions of the Insurance such coverage would not have been provided except for this endorsement then the Insured will reimburse the Insurers for such payments made in providing coverage under Part 205. 6. The terms conditions limitations and exclusions of the Insurance shall apply to claims made under the Insurance which (a) are in excess of the limits specified in Part 205 or (b) are not governed by the provisions of Part 205. AVN57A (USA) NUMBER TWO CANADIAN TRANSPORTATION AGENCY AIR TRANSPORTATION REGULATIONS: PRESCRIBED LIABILITY INSURANCE COVERAGE - SECTION 7 (HEREINAFTER CALLED “SECTION 7”) AIRCRAFT ACCIDENT LIABILITY INSURANCE IT IS UNDERSTOOD AND AGREED THAT: 1. The Insurance to which this endorsement is attached is hereby amended to provide coverage in compliance with the provisions of Section 7. 2. Such coverage shall be within the limits of liability in the Insurance and not in addition to or in excess thereof. 3. Unless the Insurance otherwise provides and to the extent permitted by the provisions of Section 7, the following exclusions shall apply: (i) War Exclusions Clause AVN48B paragraphs (a) and (b) or equivalent clause(s). (ii) Noise and Pollution and Other Perils Exclusion Clause AVN46B or equivalent clause(s). (iii) Nuclear Risks Exclusion Clause AVN38B or equivalent clause(s). (iv) Bodily injury to or sickness disease or death of any employee arising out of and in the course of his/her employment. (v) Injury to or destruction of property owned rented leased or loaned to or occupied or used by the Insured. 4. If the Insurers are called upon to provide coverage to the Insured in compliance with Section 7 including the defence and legal costs associated therewith and if by reason of the terms conditions limitations and exclusions of the Insurance such coverage would not have been provided except for this endorsement then the Insured will reimburse the Insurers for such payments made in providing coverage under Section 7. 5. The terms conditions limitations and exclusions of the Insurance shall apply to claims made under the Insurance which (a) are in excess of the limits specified in Section 7 or (b) are not governed by the provisions of Section 7. AVN57C (Canada) NUMBER THREE SWITZERLAND AIR NAVIGATION ACT 21st DECEMBER 1948 AIR NAVIGATION DECREE 14th NOVEMBER 1973 (HEREINAFTER CALLED “THE ACTS”)

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AIRCRAFT THIRD PARTY LEGAL LIABILITY IT IS UNDERSTOOD AND AGREED THAT: 1. The Insurance to which this endorsement is attached is hereby amended to provide cover as required by the regulations of the Acts in respect of bodily injury or property damage caused to third parties on the ground up to the limits specified therein. 2. Such coverage shall be within the limits of liability in the Insurance and not in addition to or in excess thereof. 3. Unless the Insurance otherwise provides the following exclusions apply: (i) War Hijacking and Other Perils Exclusion Clause AVN48B paragraphs (a) and (b) or equivalent clause(s). (ii) Noise and Pollution and Other Perils Exclusion Clause AVN46B or equivalent clause(s). (iii) Nuclear Risks Exclusion Clause AVN38B or equivalent clause(s). (iv) Bodily injury to or sickness, disease or death of any employee arising out of and in the course of his/her employment. (v) Injury to or destruction of property owned rented leased or loaned to or occupied or used by the Insured. 4. If the Insurers are called upon to provide coverage to the Insured in compliance with the said Air Navigation Act or Air Navigation Decree including the defence and legal costs associated therewith and if by reason of the terms, conditions, limitations and exclusions of the Insurance such coverage would not have been provided except for the provisions of this endorsement then the Insured will reimburse the Insurers for such payments made in providing such coverage. 5. The terms, conditions, limitations and exclusions of the Insurance shall continue to apply to claims made under the Insurance which (a) are in excess of the limits specified above or (b) are not governed by the said Air Navigation Act or Air Navigation Decree. AVN57A (Switzerland) NUMBER FOUR CIVIL AVIATION (CARRIERS’ LIABILITY) ACT 1959 - AUSTRALIA (applicable to Passenger Liability only) IT IS UNDERSTOOD AND AGREED THAT: 1. The Insurance to which this endorsement is attached is hereby amended to provide coverage in compliance with the prescribed requirements referred to in Part IVA subsection 41C(2) of the Civil Aviation (Carriers’ Liability) Act 1959. 2. Such coverage shall be within the limits of liability in the Insurance and not in addition to or in excess thereof. 3. Such coverage shall continue until cancelled by the Insurers or their authorised representative giving the appropriate notice. 4. Unless the Insurance otherwise provides the following exclusions not prohibited by the provisions of the said Act shall apply:

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4.1 War Exclusion Clause AVN48B paragraphs (a) and (b) or equivalent clause(s). 4.2 Noise and Pollution and Other Perils Exclusion Clause AVN46B or equivalent clause(s). 4.3 Nuclear Risks Exclusion Clause AVN38B or equivalent clause(s). 4.4 Bodily Injury to or sickness, disease or death of any employee arising out of and in the course of his/her employment. 5. The coverage for personal injury as required by the said Act to be provided by the Insurance to which this endorsement is attached shall be understood to mean bodily injury, sickness, disease, fright, shock or mental anguish including death resulting therefrom. 6. If the Insurers are called upon to provide coverage to the Insured in compliance with the said Act including the defence and legal costs associated therewith and if by reason of the terms, conditions, limitations and exclusions of the Insurance such coverage would not have been provided except for this endorsement then the Insured will reimburse the Insurers for such payments made in providing coverage under the said Act. 7. The terms, conditions, limitations and exclusions of the Insurance shall apply to claims made under the Insurance which (a) are in excess of the limits specified in the said Act or (b) are not governed by the provisions of the said Act. AVN57A (Australia) NUMBER FIVE PERSONAL INJURY EXTENSION This Insurance extends to indemnify the Insured for legal liability for damages awarded to any person arising out of one or more of the following offences committed during the Period of Insurance but only where such offences are committed in connection with that part of the Insured’s aviation operations or interests for which other coverage is granted by the Insurance: 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 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. Coverage afforded by paragraph 6. includes the liability of the person performing such medical services provided always that this Insurance will only respond in excess of any valid and collectable insurance held by the person performing such medical services. The following additional exclusions shall apply to the Insurance provided by this extension: (a) liability assumed by the Insured by agreement under any contract unless such liability would have

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attached to the Insured even in the absence of such agreement, (b) liability arising out of the wilful violation of penal statute or ordinance committed by or with the knowledge or consent of the Insured, (c) liability 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 directly or indirectly related to the past, present or potential employment of any person by the Insured. The limit of liability applicable to this extension shall be (or currency equivalent) any one offence and in the annual aggregate during the Period of Insurance being within the overall Insurance limit and not in addition thereto but this limit shall not apply to passengers for whom the Combined Single Limit stated in the Insurance Schedule shall apply. All other terms and conditions of this Insurance remain unchanged. AVN60A (Amended) NUMBER SIX DATE RECOGNITION LIMITED COVERAGE CLAUSE WHEREAS the Insurance of which this Endorsement forms part includes the Date Recognition Exclusion Clause (Clause AVN2000A), it is hereby understood and agreed that, subject to all terms and provisions of this Endorsement, Clause AVN2000A shall not apply: (1) to any accidental loss of or damage to an aircraft defined in the Insurance Schedule (“Insured Aircraft”); (2) to any sums which the Insured shall become legally liable to pay, and (if so required by the Insurance) 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 Insurance (except as specifically provided herein), and nothing in this Endorsement extends coverage beyond that which is provided by the Insurance. 2. Nothing in this Endorsement shall provide any coverage: (a) in respect of grounding of any aircraft; and/or

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(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 Insurance. 3. The Insured agrees that it has an obligation to disclose in writing to the Insurers during the Period of Insurance any material facts relating to the Date Recognition Conformity of the Insured’s operations, equipment and products. AVN2001A (Applicable to Hull and Aircraft Liability Coverage) DATE RECOGNITION LIMITED COVERAGE CLAUSE WHEREAS the Insurance of which this Endorsement forms part includes the Date Recognition Exclusion Clause (Clause AVN2000A), it is hereby understood and agreed that, subject to all terms and provisions of this Endorsement, Clause AVN2000A shall not apply to any sums which the Insured shall become legally liable to pay, and (if so required by the Insurance) shall pay (including costs awarded against the Insured) in respect of: (1) accidental bodily injury, fatal or otherwise, or loss of or damage to property caused by an aircraft accident occurring during the Period of Insurance and arising out of a risk insured under the Insurance; and/or (2) accidental bodily injury, fatal or otherwise, or loss of or damage to property caused by an accident, other than an aircraft accident, occurring during the Period of Insurance and arising out of a risk insured under the Insurance. For the avoidance of doubt, solely for the purposes of this paragraph (2) and without prejudice to the meaning of the words in any other context, “bodily injury” shall mean only physical corporeal injury and unless arising directly therefrom shall not include mental or psychological injury. PROVIDED THAT: 1. Coverage provided pursuant to this Endorsement shall be subject to all terms, conditions, limitations, warranties, exclusions and cancellation provisions of the Insurance (except as specifically provided herein), and nothing in this Endorsement extends coverage beyond that which is provided by the Insurance. 2. Nothing in this Endorsement shall provide any coverage : (a) applying in excess of any scheduled underlying insurance and/or in respect of any non aviation risks; and/or (b) in respect of grounding of any aircraft; and/or (c) in respect of loss of use of any property unless it arises out of physical damage to or destruction of property in the accident giving rise to a claim under the Insurance. 3. The Insured agrees that it has an obligation to disclose in writing to the Insurers during the Period of Insurance any material facts relating to the Date Recognition Conformity of the Insured’s operations, equipment and products. AVN2002A (Applicable to non Aircraft Liability only) NUMBER SEVEN TRANSPORTATION OF PASSENGERS

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It is hereby understood and agreed that with effect from inception this Insurance includes the liability of the Insured for Bodily Injury to passengers and Property Damage to passenger baggage arising out of the transportation of any passenger and their baggage by any vehicle in connection with their contract of carriage by air in consequence of which exclusion 3.3.2.8. is deemed deleted for the purposes of this coverage only and replaced with the following: Arising from the use of any mechanically propelled vehicle which the Insured may use or cause or permit any other person to use on the road in such a manner as to render them responsible for insurance or the provision of security under any domestic or international law appertaining to road traffic. NUMBER EIGHT (Applicable to Section Three) PASSENGER AND CREW VOLUNTARY SETTLEMENT ENDORSEMENT The Insurers will at the request of and regardless of legal liability of the Insured offer settlement on the basis of the benefits hereinafter set forth in respect of bodily injury sustained by any passenger or crew member caused by an Accident provided that at the time of such Accident causing such bodily injury the coverage provided for in Section Three of the Insurance is effective in respect of such Accident (or would be effective but for the application of Exclusion 3.3.2.1. of Section Three). 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 person” 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 person” shown below. DEFINITIONS “ACCIDENT” means any one accident or series of accidents arising out of one event. “LOSS OF A LIMB” means loss by physical separation of a hand at or above the wrist or of a foot at or above the ankle. “TOTAL LOSS OF SIGHT” means loss of sight which is certified as being entire and irrecoverable by a licensed ophthalmologist. “PERMANENT TOTAL DISABLEMENT” means disablement which has for twelve months from the date of the Accident necessarily and continuously disabled the person from attending to business or occupation of any and every kind or if he has no business or occupation confined him immediately and continuously to the house and prevented him from attending to any of his usual duties (if any) and at the expiry of that twelve months period being beyond hope of improvement. 3. ADDITIONAL EXCLUSION 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 but payments in excess of such amount shall be recoverable hereunder subject to the limit specified.

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(b) for bodily injury to any person 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 person 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); 4. 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 any passenger or crew member. 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 Insurance from the injured person and/or any person having a cause of action for such bodily injury. If the injured person 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 person 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 Section Three of the Insurance to which this Endorsement is attached, shall be available as fully and completely as if this Endorsement had not been issued. LIMITS OF SETTLEMENT Each person TWD 20,000,000; being included within the combined single limit as set forth in 3.3.1. of the Insurance Schedule and not in addition thereto. All claims will be monitored by Insurers and any claims in excess of TWD3,000,000 (or such higher limit as may be agreed by Insurers) any one person shall be subject to Insurers' agreement. It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this Endorsement is subject to the terms, exclusions, conditions and limitations of the Insurance to which it is attached. AVN34A (Amended) ENDORSEMENT NINE (Applicable to Section Three) PASSENGER LIABILITY (MUTUAL REVISION & SPECIAL CONTRACTS) 1. As used herein "Warsaw Convention" means the Convention for the Unification of Certain Rules relating to International Carriage by Air signed at Warsaw, October 2th, 1929, or any amendment or supplement to that Convention whether by means of Protocol, additional, new or supplemental Convention or otherwise. 2. MUTUAL REVISION. If at any time during the Period of Insurance the Insured's legal liability may be affected by any one or any combination of the following events: (a) Any ratification or denunciation of, or accession or adherence to, the Warsaw Convention or if the Warsaw Convention ceases to apply in respect of any State or Territory where it was previously in force (b) Any alteration of liability by national legislation or in conformity with any Government or other official

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requirement THEN notwithstanding any other provisions of the Insurance, and in contemplation of any of the above events, either the Insured or the Insurers shall have the right to request a revision of terms and conditions. Revised terms and conditions agreed by the parties hereto shall, unless otherwise agreed, become operative if and when the events (or event) relevant to the aforesaid revision become(s) effective. If no agreement is reached on revised terms and conditions on the expiry of 60 (sixty) days from the date of a written request for the aforesaid revision, then either party shall have the right to give 30 (thirty) days ' notice of cancellation of the Insurance. 3. SPECIAL CONTRACTS Subject to the prior approval of Insurers, this Insurance may be extended to cover the Insured’s legal liability in respect of Special Contracts. As used herein “Special Contracts” means As used herein "Special Contract" means (i) any agreement between the Insured and a passenger for a higher limit of liability in accordance with Article 22 (1) of the Warsaw Convention OR (ii) any other agreement between the Insured and a passenger whereby the Insured assumes increased legal liability in respect of the passenger's death or injury. Special Contracts which have been approved as aforesaid are identified as follows: (a) Contracts issued under Warsaw / Hague Protocol or local legislation and/or adoption by the Insured of a higher Special Contract limit or unspecified liability regime during currency (b) Contracts issued in relation to the Insureds operations into Italy, in compliance with Regulation (EC) 785/2004 and ART 798 of the Italian Air Navigation Code. (c) Contracts issued in compliance with the European Commission Regulation on Air Carrier Liability, EU 2027/97 of 9th October 1997 as amended by European Commission Regulation 889/2002 of 13th May 2002. (d) Contracts issued in accordance with the IATA Intercarrier Agreement. (e) Requirements of German Civil Aviation Authorities with respect to third party liability subject to the limits of liability stated in the Insurance Schedule. 4. Nothing herein shall be deemed to alter the limits of Insurers liability as specified in the Insurance. Any condition of the Insurance relating to contractual agreements is varied only as may be necessary to the extent herein provided. AVN44A (Amended) NUMBER TEN CARGO / MAIL LIABILITY PROVISIONS (applicable to Section Three) It is hereby understood and agreed that in respect of the Insured’s liability arising from their cargo / mail operations: (a) agents shall be included as additional Insureds where required;

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(b) all cargo is protected from the time the insured interest comes under the control of the Insured until the time of delivery to ultimate consignee at final destination including whilst in custody of successive carriers, if any. NUMBER ELEVEN PASSENGER ENTERTAINMENT SYSTEMS (INCLUDING VIDEO EQUIPMENT) AND/OR PERSONAL VIDEO SYSTEMS Section One is extended to apply to passenger entertainment systems (including video equipment) and/or personal video systems in the Insured’s care, custody or control including whilst they are installed in the aircraft and whilst on the ground (including during installation and removal) up to a maximum sum insured of any one system in addition to the agreed value of the aircraft subject to the maximum agreed value specified in the Schedule. Deductible: No deductible is applicable to the total loss or constructive total loss or arranged total loss of any system or the aircraft to which such system(s) is attached but each and every loss shall be deducted in respect of losses otherwise payable under this endorsement. ENDORSEMENT TWELVE CONTINGENT LIABILITY (A) The coverage provided by Section Three of this Insurance for liability arising out of the operation of aircraft is extended to apply to such liability of the Insured arising from the operation of aircraft while they are leased or sub-leased by the Insured to other person(s) or organisation(s) (hereinafter referred to as “Lessee”) under a lease agreement which requires the Lessee to effect aircraft liability insurance for liability arising in connection with the aircraft whilst it is leased to the Lessee. The Insured shall endeavour to ensure that: (a) in respect of such liability the Insured is added as additional Insured on the Lessee’s insurance and that such insurance will be primary and without right of contribution from any other insurance that is available to the Insured. (b) the insurance effected by the Lessee is for a limit of liability that is not less than that applicable to Section Three of this Insurance or such lower limit as may be agreed by Insurers. (c) the coverage afforded to them under the Lessee’s insurance shall not be invalidated by any act or omission of any other person or organisation which results in a breach of any term, condition or warranty of such insurance provided that the Insured has not caused, contributed to or knowingly condoned the said act or omission. The insurance afforded by this clause shall not apply to: (a) any amount which is recoverable as a claim under the insurance effected by the Lessee. (b) any amount which is not recoverable (in whole or in part) as a claim under the insurance effected by the Lessee by reason of the insolvency of an insurer or insurers. (c) any liability of the Lessee. The insurance afforded by this clause shall not exceed the limit of liability applicable to Section Three of this Insurance less any amount recoverable as a claim under the Lessee’s insurance. (B) The coverage provided by Section Three of this Insurance for liability arising out of the operation of aircraft is extended to apply to such liability of the Insured arising from the operation of aircraft while they

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are leased to the Insured by other person(s) or organisation(s) (hereinafter referred to as “Lessor”) and operated by the Lessor under a lease agreement which requires the Lessor to effect aircraft third party liability insurance for liability arising in connection with the aircraft whilst it is leased to the Insured. The Insured shall endeavour to ensure that (a) in respect of such liability the Insured is added as additional Insured on the Lessor’s insurance and that such insurance will be primary and without right of contribution from any other insurance that is available to the Insured. (b) the insurance effected by the Lessor is for a limit of liability that is not less than that applicable to Section Three of this Insurance or such lower limit as may be agreed by Insurers. (c) the coverage afforded to them under the Lessor’s insurance shall not be invalidated by any act or omission of any other person or organisation which results in a breach of any term, condition or warranty of such insurance provided that the Insured has not caused, contributed to or knowingly condoned the said act or omission. The insurance afforded by this clause shall not apply to: (a) any amount which is recoverable as a claim under the insurance effected by the Lessor. (b) any amount which is not recoverable (in whole or in part) as a claim under the insurance effected by the Lessor by reason of the insolvency of an insurer or insurers. (c) any liability of the Lessor. The insurance afforded by this clause shall not exceed the limit of liability applicable to Section Three of this Insurance less any amount recoverable as a claim under the Lessor’s insurance. GLOBAL080A NUMBER THIRTEEN CONTINGENT HULL The coverage provided by Section One of this Insurance is extended to apply to aircraft which are owned by or leased to the Insured whilst they are leased or sub-leased to other person(s) or organisation(s) (hereinafter referred to as “Lessee”) under a lease agreement which requires the Lessee to effect insurance covering such aircraft against the risks of physical loss or damage. The Insured shall endeavour to ensure that (a) in the event of a claim on the aircraft adjustable on the basis of a total loss, settlement (net of any applicable deductible) under the Lessee’s insurance shall be made to, or to the order of the Insured (b) the coverage afforded to them under the Lessee’s insurance shall not be invalidated by any act or omission of any other person or organisation which results in a breach of any term, condition or warranty of such insurance provided that the Insured has not caused, contributed to or knowingly condoned the said act or omission. The Insured shall not knowingly disclose the existence of this clause to the Lessee and shall in all respects act as though uninsured by this clause when negotiating or evaluating a prospective lease agreement. The insurance afforded by this clause shall not exceed the lesser of (a) the value of the aircraft as agreed by the Insurers or

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(b) such other value that is required to be insured under the lease agreement less any amount which is recoverable under the Lessee’s insurance. The insurance afforded by this clause shall not apply to loss or damage which is not recoverable (in whole or in part) as a claim under the insurance effected by the Lessee by reason of the insolvency of an insurer or insurers. GLOBAL079A NUMBER FOURTEEN BUYER FURNISHED EQUIPMENT Notwithstanding exclusion 2.2.1. Section Two, is extended to apply to buyer furnished equipment before, during and after it is installed in new/additional aircraft before such aircraft are accepted by the Insured subject to a limit of each occurrence. The deductibles applicable to Section One or Section Two do not apply to this extension which is instead subject to the following deductible. Deductible: No deductible is applicable to the total loss or constructive total loss or arranged total loss of the equipment or of the aircraft to which such equipment is attached but shall be deducted from each and every claim in respect of claims otherwise payable under this endorsement. Coverage is subject to advice of exposure to Insurers as soon as practicable. NUMBER FIFTEEN COMPULSORY INSURANCE REQUIRMENTS (Only applicable to Section Three) Coverage hereon shall include the requirements of German Civil Aviation Authorities with respect to third party liability subject always to the limit of liability provided herein not being exceeded. NUMBER SIXTEEN EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES) 1. WHEREAS the Insurance of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN48B), IN CONSIDERATION of an Additional Premium agreed by each Insurer, it is hereby understood and agreed that with effect from inception, all sub-paragraphs other than (b) of Clause AVN48B forming part of this Insurance 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 AVN48B. Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft. 3. LIMITATION OF LIABILITY The limit of Insurers' liability in respect of the coverage provided by this Endorsement shall be USD500,000,000 * or the applicable Insurance limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Insurance limit and not in

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addition thereto. To the extent coverage is afforded to an Insured under the Insurance, this sub-limit shall not apply to such Insured’s liability: (a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Insurance 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 Insurance 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 AVN48B - upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved (iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use - upon such requisition PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked. 5. REVIEW AND CANCELLATION (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 GMT 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 Clause AVN48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given. (c) Cancellation (7 days) The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given. (d) Notices All notices referred to herein shall be in writing.

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AVN52E This Endorsement is not applicable to Section One or Section Two. NUMBER SEVENTEEN WET LEASE AGREEMENTS It is hereby understood and agreed that China Airlines Ltd. (CAL) (Lessor) and Mandarin Airlines Ltd. (MDA) (Lessee) will from time to time enter into short term Aircraft Wet Lease Agreements in respect of the wet lease from CAL to MDA of various aircraft. In connection with the above and Supplementary Wet Lease Indemnity and Insurance Provisions to Main Agreements the following provisions are included in respect of Mandarin Airlines (as Lessee); In respect of Liability (a) To include the Lessor, its directors, officers, servants, employees and agents as additional insureds (the "Additional Insureds"). (b) To provide that the insurance shall operate in all respects as if a separate Insurance had been issued covering each party insured hereunder. 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 Insurance Schedule. However this paragraph shall not apply to any claims for loss of or damage to aircraft or spare parts and equipment insured under this Insurance. (c) To provide that the insurance hereunder shall be primary and without right of contribution from any other insurance which may be available to the Additional Insureds. (d) To provide that the Additional Insureds shall have no responsibility for premium. (e) To provide that the cover afforded to each Additional Insured by the Insurance shall not be invalidated by any act or omission (including misrepresentation and non-disclosure) of any other person or party which results in a breach of any term, condition or warranty of the Insurance PROVIDED THAT the Additional Insured so protected has not caused, contributed to or knowingly condoned the said act or omission. To provide that, except in respect of any provision for Cancellation or Automatic Termination specified in the Insurance or any endorsement thereof, the cover provided may only be cancelled or materially altered in a manner adverse to the Additional Insureds by Insurers giving not less than Thirty (30) days notice in writing except that with respect to war and allied perils coverage, such period of notice shall be seven (7) days or such lesser period as may be customarily available. Notice shall not however be given at normal Insurance expiry date or in the event of non-renewal. It is further agreed that coverage shall automatically include wet lease agreements between China Airlines, Mandarin Airlines and Tigerair Taiwan. With regard to the subject wet leases in no event shall the Combined Single Limit for all Insureds exceed USD1,750,000,000 any one Occurrence / aircraft / offence. NUMBER EIGHTEEN CORPORATE DEFENCE COSTS EXTENSION The coverage provided by this Extension shall only be effective and operative provided and for so long as Insurers continue to have a direct or indirect financial interest in the outcome of the relevant

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proceedings or inquiry (in respect of which coverage is provided under this Extension) under some other section of this Insurance. Any payments hereunder shall only be made provided they are permissible under all applicable laws and regulations. Following an Occurrence for which coverage is provided by this Insurance, and not withstanding any exclusion in respect of illegal or criminal activities or dishonest acts under this Insurance, Insurers agree to pay all reasonable defence costs and expenses (other than the salaries of the Insured’s employees and the Insured’s other normal operating expenses) incurred by the Insured, with Insurers consent, for representation at any court, including any criminal court, or similar proceedings brought against the Insured for an actual or alleged breach of: (a) UK Corporate Manslaughter Act and Corporate Homicide Act 2007 or (b) UK Health and Safety at Work Act or the Health and Safety at Work (Northern Ireland) Order 1978 or (c) criminal legislation in any other country similar to (a) or (b) as set out in the schedule attached hereto and agreed by Insurers. Insurers shall also pay the reasonable costs and expenses (other than the salaries of the Insured’s employees and the Insured’s other normal operating expenses) incurred by the Insured, with Insurers’ consent, in appealing against any conviction or the imposition of a remedial or publicity order (in connection with the above) provided that in the opinion of a Queen’s Counsel or equivalent legal authority (to be mutually agreed upon by the Insured and Insurers) such an appeal could be made by the Insured with the reasonable probability of success. All such costs and expenses provided for by this Extension will be payable in excess of any other insurance available to the Insured. Where any such insurance is also subject to non contribution then the amount of such costs and expenses over all insurances shall not exceed the single highest limit available under any of the insurances. In this event the liability of the Insurers under this Insurance shall be limited to that proportion of such costs and expenses which the limit of Insurers’ liability bears to the overall combined limit for such costs and expenses under all insurances. The coverage provided by this Extension does not apply to: (a) Excess Non Aviation Liability cover provided by this Insurance or (b) fines, remedial costs, publicity costs or penalties in connection with the foregoing or (c) defence costs and expenses incurred by natural persons in their capacity as individuals, directors, partners, officers, servants, employees, and shareholders. Insurers' liability for all costs and expenses provided for above shall be in addition to the Limit of Liability of this Insurance but subject to an aggregate limit of USD25,000,000 in respect of all matters arising out of one or more Occurrences during the Period of Insurance and whether involving one or more Insureds. SCHEDULE None. AVN108 NUMBER NINETEEN GROUNDING LIABILITY EXTENSION 1. The coverage afforded under Section Three of this Insurance is extended to apply to loss of use of aircraft caused by a Grounding resulting from an Occurrence arising from the Products Hazard for which

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coverage is provided under Section Three. 2. For the purposes of this Endorsement, the definition of “Occurrence” is amended to read as follows: The term "Occurrence" means an accident, happening or event or a continuous or repeated exposure to conditions (other than a Grounding) occurring during the Period of Insurance which results in Bodily Injury and/or Property Damage neither expected nor intended from the standpoint of the Insured. All Bodily Injury and/or Property Damage arising out of substantially the same general conditions shall be deemed to arise out of one Occurrence. 3. The following definition is added for the purposes of this Endorsement only: “Grounding” means the complete and continuous withdrawal from all flight operations at or about the same time of one or more aircraft due to the mandatory order of any airworthiness authority because of an existing, alleged or suspected like defect, fault or condition affecting the safe operation of two or more aircraft and which results from an Occurrence. Any liability of the Insured arising from such Grounding shall attach to the Period of Insurance in which the Occurrence took place. A Grounding shall commence from the date on which the first such order becomes effective and continue until the date on which the last such order relating to the same existing, alleged or suspected like defect, fault or condition is withdrawn or becomes ineffective. 4. This Endorsement does not cover loss of use of any aircraft: (a) occurring during maintenance, routine overhaul or alteration, or whilst being modified for purposes other than those relating to Grounding; (b) occurring during the period that the Insured does not use reasonable efforts to find and eliminate the cause of the loss of use; (c) caused by the failure of the Insured to make available or deliver goods or products to the operator of such aircraft; (d) if such loss of use is the subject of a Products Hazard claim under Section Three of this Insurance; (e) owned by, used by or in the possession of the armed services of any government; (f) in the care, custody or control of the Insured other than aircraft temporarily returned to the Insured for modification relating to Grounding; (g) after it is designated by the manufacturer or required by the direction of any airworthiness authority to be removed from all flight operations due to its certificate of airworthiness being withdrawn by reason of the aircraft’s safe operational life having been reached or exceeded. 5. The coverage afforded by this Endorsement shall be subject to a limit of USD125,000,000 any one Grounding and in the annual aggregate, such limit being included within, and not in addition to, the aggregate limit in respect of the Products Hazard. NUMBER TWENTY USE OF VEHICLES OUTSIDE OF THE PRECINCTS OF ANY AIRPORT This Insurance includes liability of the Insured arising out of the use of vehicles outside of the precincts of any airport or airfield whilst attending their aircraft in an emergency situation in consequence of which exclusion 3.3.2.8. is deemed deleted for the purposes of this endorsement only and replaced with the following: Arising from the use of any mechanically propelled vehicle which the Insured may use or cause or permit

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any other person to use on the road in such a manner as to render them responsible for insurance or the provision of security under any domestic or international law appertaining to road traffic. Notwithstanding General Condition 6.13, the coverage afforded under this endorsement shall apply in excess of any other insurance available to the Insured. NUMBER TWENTY ONE SANCTIONS AND EMBARGO CLAUSE Notwithstanding anything to the contrary in the Insurance the following shall apply: 1. If, by virtue of any law or regulation which is applicable to an Insurer at the inception of this Insurance or becomes applicable at any time thereafter, providing coverage to the Insured is or would be unlawful because it breaches an embargo or sanction, that Insurer shall provide no coverage and have no liability whatsoever nor provide any defence to the Insured or make any payment of defence costs or provide any form of security on behalf of the Insured, to the extent that it would be in breach of such law or regulation. 2. In circumstances where it is lawful for an Insurer to provide coverage under the Insurance, but the payment of a valid and otherwise collectable claim may breach an embargo or sanction, then the Insurer will take all reasonable measures to obtain the necessary authorisation to make such payment. 3. In the event of any law or regulation becoming applicable during the Period of Insurance which will restrict the ability of an Insurer to provide coverage as specified in paragraph 1, then both the Insured and the Insurer shall have the right to cancel its participation on this Insurance in accordance with the laws and regulations applicable to the Insurance provided that in respect of cancellation by the Insurer a minimum of 30 days notice in writing be given. In the event of cancellation by either the Insured or the Insurer, the Insurer shall retain the pro rata proportion of the premium for the period that the Insurance has been in force. However, in the event that the incurred claims at the effective date of cancellation exceed the earned or pro rata premium (as applicable) due to the Insurer, and in the absence of a more specific provision in the Insurance relating to the return of premium, any return premium shall be subject to mutual agreement. Notice of cancellation by the Insurer shall be effective even though the Insurer makes no payment or tender of return premium. AVN111 NUMBER TWENTY TWO NAMED SUBSIDIARIES In respect of the following Insureds coverage is limited to liability coverage only, as provided under Section Three of this Insurance. Taoyuan International Airport Services Co Ltd (TIASCO) Taiwan Airport Services Co Ltd (Tasco) Taiwan Air Cargo Terminal (TACT) China Pacific Catering Services Taiwan Aircraft Maintenance and Engineering Co., Ltd. Deductibles to apply in respect of these Insureds: 1. Property Damage (other than to aircraft): USD10,000 any one Occurrence but USD5,400 any one

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Occurrence in respect of Taoyuan International Airport Services Co. Ltd. (TIASCO) only. 2. Property Damage to aircraft: USD25,000 any one Occurrence. The above deductibles shall also apply: (a) when the claim arises out of an accident to the carrying aircraft or other conveyance. (b) when the claim arises under Extended Coverage Endorsement (Aviation Liabilities) AVN52E. (c) to claims arising from fire, wind, typhoon, tornado, cyclone, flood, hail, theft, lightning, explosion, earthquake or tidal wave.