Australian Aviation Underwriting Pool Proprietary Limited A.C.N. 004 489 810 Your Aviation Insurance Policy - Airfield/Premises Liability EDITION 1 Section 1: ABOUT THIS POLICY 1. YOUR RELATIONSHIP WITH US We have authorised our Agent to enter into this Policy (which includes the Coverage Schedule and any endorsement(s)) with you on behalf of each of us and to do all things we are able to do under or in connection with this Policy. You have made to our Agent or there has been made to our Agent on your behalf a proposal which is incorporated into and forms part of this Policy. By this Policy we insure you in respect of certain risks involved in operating an airfield and/or occupying premises on an airfield. Any claim made under this Policy or any proceedings commenced in relation to this Policy must be made to our commenced against our Agent. Our Agent has the power to make, in its own name, any demand or commence or defend any legal action arising out of or incidental to this Policy so that the demand or action shall be as good and effective as if made or commenced by or against each of us. Should any amount of money become payable to you under this Policy each of us has agreed to pay to you, your executors, administrators or assigns the portion of that amount calculated by reference to the percentage appearing beside each of our names in the Coverage Schedule and no more. None of us nor our Agent shall have to pay to you, your executors, administrators or assigns any moneys owing or owed by another of us whether the moneys are owed under this Policy or not. 2. WHAT YOU GET UNDER THIS POLICY If you pay the agreed premium and observe the Essential Terms set out in Section 5 we agree to provide you with the insurance cover described in this Policy for the Policy period of cover and any other period for which this Policy is renewed. However, the total amount of our combined liability under this Policy is limited to the relevant amount or amounts stated in the Coverage Schedule under the heading "Limit of our Liability" less any deductible payable by you. Furthermore and importantly, under no circumstances will we pay any moneys under this Policy where your liability or the loss, damage or liability arose or occurred in any of the circumstances described in paragraphs 2 or 3 of Section 3 or in Section 4. 3. If we make a payment under this Policy, we will also pay the amount of any interest and legal costs which are awarded. However, if the amount of the judgment on, or settlement of, any claim exceeds the limit of our liability under this Policy, we will only pay that part of the interest and legal costs awarded which the limit of our liability under this Policy bears to the amount of the judgment or settlement.When calculating the amount of the judgment or settlement, interest and legal costs awarded and punitive or exemplary damages will be excluded. 4. We will also pay for any legal costs incurred with our written consent in defending any claim made in respect of an occurrence which is covered under this Policy. However, if any person indemnified under this Policy is liable to pay compensation under any judgment or settlement and that payment exceeds the limit of our liability under this Policy, we are only liable to pay that part of the legal costs as the limit of our liability under this Policy bears to the compensation payable (excluding interest and legal costs awarded or agreed and punitive or exemplary damages) and we have the right to recover from that person as a debt due and payable any part of such costs we have paid in excess of our liability. 5. It shall be your obligation to pay the deductible stated in the Coverage Schedule in respect of each claim under this Policy. Should more than one deductible be payable under this Policy as a result of one occurrence only one such deductible shall be paid. That one deductible shall be the highest deductible stated in the Coverage Schedule applicable to the occurrence. Section 2: DEFINITIONS In this Policy: WE, OUR, US "We" or "Our" or "Us" refers to the insurance companies named on the first page of the Coverage Schedule. YOU, YOUR "You" or "Your" refers to the Assured(s) named in the Coverage Schedule. OUR AGENT "Our Agent" refers to Australian Aviation Underwriting Pool Proprietary Limited. COVERAGE SCHEDULE "Coverage Schedule" means the Schedule to this Policy which sets out details relevant to your insurance cover including the limits of our liability in respect of the risks for which this Policy covers you. Please read it. AIRFIELD "Airfield" means any place in Australia licensed, approved or authorized under operational legislation for the take off, landing and/or movement of aircraft and used for those and related purposes. AIRCRAFT "Aircraft" means any aircraft on the civil aircraft register of any nation, or aircraft temporarily removed from such register or to be entered thereon or restored thereto, and includes its engine(s), instruments, radios and equipment . FLIGHT "Flight" starts at the moment when power is applied to the engine(s) of the aircraft for the purpose of taking off and ends when the aircraft starts to taxi under its own power after resuming contact with land or water or comes to rest. ON THE GROUND "On the ground" means all periods during which the aircraft is not in flight, taxying or moored. UNIT "Unit" means a part or assembly of parts (including any sub-assemblies) which has been assigned a serviceable period as a part or an assembly. An engine for propulsion or auxiliary power, complete with all items from the aircraft necessary for test cell running, shall constitute a single unit. OPERATIONAL LEGISLATION "Operational Legislation" means all provisions in force from time to time of the Air Navigation Act, Civil Aviation Act, Air Navigation Regulations, Civil Aviation Regulations, Air Navigation Orders, Civil Aviation Orders and orders, requirements, notices, directions, circulars and approvals issued by the Civil Aviation Authority, the Department of Transport or by any other competent authority or by equivalent authorities in respect of foreign registered aircraft. PASSENGER "Passenger" means a person who is on board the aircraft (including a person in the process of embarking or disembarking) for the purpose of carriage but does not include a pilot in command. AUSTRALIA "Australia" means the Commonwealth of Australia but NOT including Australian Antarctic Territory, Macquarie Island, Territory of Heard Island and McDonald Islands or territorial waters adjacent thereto. POLICY PERIOD OF COVER "Policy Period of Cover" means the period so identified on the Coverage Schedule or any endorsement. Section 3: YOUR LIABILITY TO OTHER PERSONS COVER 1. We will pay, up to the relevant limit of our liability stated in the Coverage Schedule, such sums which you are legally liable to pay as compensation (excluding interest and legal costs awarded and punitive or exemplary damages) for bodily injury (including death) of other persons or accidental loss of or damage to the property of other persons which occurs during the Policy period of cover (a) in or about the airfield or premises stated in the Coverage Schedule and (b) in connection with your business or operations stated in the Coverage Schedule. 2. We will not pay for: (a) loss of or damage to any unit(s) or component part(s) of an aircraft directly caused by the actual work of maintenance or repair of that unit or component part; (b) the cost of redoing or repairing any defective workmanship or replacing defective materials for which you may be liable. 3. We will not pay in respect of any claim: (a) for the loss of or damage to the property of other persons which is in your care custody or control; (b) for the loss of or damage to or bodily injury or property damage caused by any aircraft, ship, vessel and/or craft owned, chartered, rented, used or operated by you or on your account but this exclusion shall not apply to loss of or damage to motor vehicles or aircraft on the ground, not owned by you but in your care, custody or control; (c) arising out of the use of any motor vehicle (i) on a public highway; (ii) elsewhere with your knowledge and consent so as to render you or the user responsible for insurance under any laws concerning motor vehicles; (d) arising out of the manufacture, construction, alteration, repair, service, treatment, sale, supply or distribution of any goods or products, (except food and drink dispensed other than for profit on the premises stated in the Coverage Schedule) after such goods or products have ceased to be in your possession, custody or control; (e) for the loss of or damage to (i) robes, wearing apparel and/or personal effects; (ii) stock and/or merchandise of any description; (f) for which you are liable under Part VA of (Commonwealth) Trade Practices Act 1974. Section 4: WHAT WE DO NOT COVER UNDER THIS POLICY 1. You are not covered in respect of any claim: (a) under workersı compensation, employeesı compensation, accident compensation or equivalent legislation other than a subrogation claim brought by an insurer to recover sums paid pursuant to such legislation; (b) arising out of the death or injury of any person in the course of or in connection with his or her employment by the party claiming indemnity under this Policy; (c) for the loss of or damage to property owned by you or your employees; (d) arising out of any air display, air meet, air race or air show or the use or occupation of any building construction or stand to accommodate spectators; (e) arising out of construction, demolition or alteration (other than normal maintenance) by you or your contractors or subcontractors of any buildings, runways and/or installations; (f) arising out of the operation of any airfield control tower or out of any air traffic control operations conducted by you; (g) arising out of the possession, handling, storage, sale, dealing in or distribution (by aircraft or otherwise) of agricultural fertilisers, chemicals and/or insecticides; (h) arising out of breach of any professional duty owed by you or your employees or agents; (i) arising from any work undertaken by your subcontractors; (j) arising out of the sale and/or distribution of aviation fuel, oil, lubricants and/or related fluids; (k) arising in whole or in part out of the presence of asbestos in any form in or about the premises stated in the Coverage Schedule; (l) arising out of or in connection with: (i) the use of any aircraft owned by you, or in which you have any proprietary or security interest; (ii) flight of any aircraft not owned by you. 2. This Policy does not provide cover for any legal liability arising from or created or determined by the laws, statutes or courts of any jurisdiction outside Australia. 3. CONTRACTUAL LIABILITY You are not covered for any liability you have assumed under any agreement other than a contract for the lease of the premises stated in the Coverage Schedule except to the extent that you would have been liable if the agreement had not been entered into. 4. OTHER POLICIES You are not covered under this Policy in respect of any claim to the extent that the risk is or should be insured by or would but for the existence of this Policy be insured by your Employerıs Liability policy or an equivalent policy required by or deemed to be in force by any workersı compensation, employeesı compensation, accident compensation or equivalent legislation. If at the time of an occurrence giving rise to a claim under this Policy the risk is insured by or would but for the existence of this Policy be insured by any other airfield liability, premises liability, aviation hangarkeepers, aircraft and/or products liability policy or policies you are not covered except to the extent that the amount of any such claim exceeds the amount payable under such other policy or policies. However, we will not pay any amount in excess of the relevant limit of our liability under this Policy. 5. RADIOACTIVE CONTAMINATION You are not covered for loss, damage or liability directly or indirectly caused by or contributed to by or arising from ionizing radiations or contamination by radioactivity. 6. WAR, HIJACKING AND OTHER POLITICAL PERILS You are not covered in respect of claims directly or indirectly caused by or arising out of: (a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power; (b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; (c) Strikes, riots, civil commotions or labour disturbances; (d) Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorists purposes and whether the loss or damage resulting there from is accidental or intentional; (e) Any malicious act or act of sabotage; (f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any government (whether civil, military or de facto) or public or local authority; (g) Hijacking or any unlawful seizure or wrongful exercise of control of an 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 your consent. Furthermore this Policy does not cover claims arising whilst an aircraft is outside your control by reason of any of the above perils. An aircraft shall be deemed to have been restored to your control on the safe return of the aircraft to you at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the aircraft. Such safe return shall require that the aircraft be parked with engines shut down and under no duress. 7. NOISE AND POLLUTION AND OTHER PERILS A. You are not covered for claims directly or indirectly occasioned by, happening through or in consequence of: (i) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated with them; (ii) pollution and contamination of any kind whatsoever; (iii) electrical and electromagnetic interference; (iv) interference with the use of property; unless caused by a crash fire explosion or collision or a recorded inflight emergency causing abnormal aircraft operation. B. With respect to any provision in this Policy concerning our duty (if any) to investigate or defend claims, such provision shall not apply and we shall not be required to defend: (i) claims excluded by Clause A, or (ii) a claim or claim covered by this Policy when combined with any claims excluded by Clause A (referred to below as "Combined Claims"). C. In respect of any Combined Claims, we shall (subject to proof of loss and the limits of this Policy) reimburse you for that portion of the following items which may be allocated to the claim or claims covered by this Policy: (i) damages awarded against you, and (ii) defence fees and expenses incurred by you. D. Nothing in this paragraph shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy. Section 5: ESSENTIAL TERMS 1. We are not liable to make any payment to or on behalf of you unless you observe and fulfil all the Essential Terms of this Policy and any other obligations imposed on you by this Policy (including any endorsement). Nor are we liable to make any payment to or on behalf of any other person otherwise entitled to indemnity under this Policy unless that person observes and fulfils all such Essential Terms and obligations. 2. You shall comply with all operational legislation and shall take all reasonable steps to ensure that all operational legislation is complied with by your agent(s) and employee(s). 3. You will at all times exercise reasonable care to ensure that you employ only competent personnel and that the land, premises, ways, implements, plant, machinery and appliances used in your business are substantial and sound and in proper order, and fit for the purpose for which they are used, and that all reasonable safeguards and precautions against accidents are provided and used. 4. All Log Books and operational or other records in connection with any aircraft in respect of which a claim is made under this Policy and which are in your custody control and/or power shall be produced on request to our Agent or any assessor appointed by Our Agent. 5. You shall use due care and do everything reasonably practicable to avoid or lessen any loss or liability covered by this Policy. Without our written consent you are not to: (i) admit any liability or fault; (ii) pay or offer or promise to pay any moneys; in respect of any claim or occurrence covered by this Policy. 6. We shall be entitled at any time and for so long as we desire to take absolute control of all negotiations and proceedings and in your name to settle or defend or pursue any claim. We may at any time upon giving written notice to you abandon the pursuit or the defence of any claim which we have undertaken but, if we do, we shall (except where you have or your representative has been dishonest or withheld relevant information) pay our share of any costs incurred in connection with such pursuit or defence up to the date we gave you notice. 7. You must immediately give to our Agent a full and truthful written description of any event likely to result in a claim being made under this Policy. You must also immediately give to our Agent any letter, writ, summons or statement of claim you receive relating to any claim under or occurrence covered by this Policy. 8. You shall not do anything to harm our interests and shall assist us in any way we or our Agent reasonably require. If required by us or our Agent, you shall attend inquests hearings and trials, and shall assist in reaching settlements, in obtaining and giving evidence, in securing the attendance of witnesses and in the conduct of litigation. 9. We have the right to recover any payment made by us from any person you may be able to hold liable or responsible and we shall have full discretion in the conduct, defence or settlement of any claim and to take any action in your name. You and any other person entitled to claim under this Policy will not hinder these rights and will give us and our Agent all information, assistance and co-operation we may require. 10. Should we make any payment to or on behalf of any of you under this Policy in circumstances where we are not liable to pay another or others of you because the other or others are in breach of Essential Terms Nos. 2 or 3, we have the right to recover as a debt due and payable from the other or others or their executors, administrators or assigns the total amount we have paid in such circumstances. 11. You must be honest in all your dealings with us. If you or any person acting on your behalf is not honest in making a claim, whether as regards amounts or otherwise, we are not liable in respect of that claim or in respect of the occurrence giving rise to that claim. 12. If there is any change in the circumstances, magnitude or nature of any of the risks covered by this Policy after this Policy is in force you must give our Agent immediate notice of the change. We are not liable for any claim arising after such a change unless our Agent has been notified of the change and we have accepted it. 13. This Policy shall not be transferred or assigned either in whole or in part without our written consent to the transfer or assignment appearing on the Policy. 14. You and we agree that this Policy shall not be construed as a policy of marine insurance. 15. We may cancel this Policy on any of the grounds set out in section 60 of the Insurance Contracts Act 1984 by giving notice in writing of the proposed cancellation to you either personally or by post to your last address known to us. Such notice shall have effect to cancel the Policy at 4.00 p.m. on the third business day after the day on which the notice was given to you or at any later time specified in the notice. If we cancel this Policy, we will return in respect of the unexpired period of insurance a pro rata portion of the premium. In the event of cancellation by you, the premium shall be adjusted on the basis of our receiving or retaining the customary short term premium charged by our Agent, details of which will be provided upon request. You are not entitled to a return of premium if any moneys have been paid or are payable by us under this Policy. 16. In the event of an award being made both against you (or your Estate) and against any other person(s) covered under this Policy (or their Estate or Estates) you shall to the extent of your liability be entitled to priority in respect of any moneys payable by us. 17. The inclusion of more than one of you as being covered under this Policy shall not in any way affect the rights of any of you, it being the intent of this Policy to protect you in the same manner as though each of you had been issued with a separate policy. However, irrespective of there being more than one of you covered under this Policy, whether by endorsement or otherwise, our total liability under this Policy shall not exceed the relevant limit(s) of our liability stated in the Coverage Schedule. 18. The exclusions set out in this Policy apply equally to any other person otherwise entitled to indemnity under this Policy