Okaloosa County BOCC — January 30, 2013 — Southern Airways Agreement — reading text

payment of premium for such insurance. Coverage is primary and is not contributing with any insurance or self-insurance maintained by the scheduled organization. The term "Insured" is used severally and not collectively, but the inclusion herein of more than one Insured shall not operate to increase the Limit of our Liability. This policy may not be canceled nor the coverage materially changed by us without thirty (380) days prior notice (10 days for non-payment of premium) of such cancellation or material change in coverage to the scheduled organization at the address indicated. With respect to Physical Damage Coverage, we agree to waive our rights of subrogation against the scheduled organization and its subsidiaries. Schedule: SOUTHERN AIRWAYS CORPORATION DBA SOUTHERN AIRWAYS EXPRESS, A DELAWARE CORPORATION ONE COMMERCE SQUARE, SUITE 2190 MEMPHIS, TN 38103 All other provisions of this policy remain the same. This endorsement becomes effective May 1, 2013 to be attached to and hereby made a part Policy No._GM 023086704-01 issued to EXECUTIVE EXPRESS AVIATION, LLC DBA JA AIR CHARTER, LLC AND AS ENDORSED By NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA Endorsement No. 51 Mich Date of Issue_January 2, 2013 AM By (Authorized Representative) GLD563 (1/05) EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES) AVN52E In consideration of an additional premium of $ INCL., this policy is amended as follows: AS RESPECTS TO: N70VR, N551G, N807JA & N368FA The policy of which this Endorsement forms part includes War, Hi-jacking and Other Perils Exclusion Clause AVN48B: 1. With effect from August 1, 2012 , all sub-paragraphs other than _(b) of War, Hi-jacking and Other Perils Exclusion Clause AVN48B are deleted SUBJECT TO all terms and conditions of this Endorsement. EXCLUSION applicable only to any coverage extended in respect of the deletion of sub-paragraph (a) of War, Hi-jacking and Other Perils Exclusion Clause AVN48B: Coverage 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. LIMITATION OF LIABILITY The limit of the Company's liability in respect of the coverage provided by this Endorsement shall be US$ 50,000,000. or the applicable policy limit, whichever the lesser, any one Occurrence and in the annual aggregate (the "sub-limit"). This sub-limit shall apply within the full policy limit and not in addition thereto. To the extent coverage is afforded to an Insured under the policy, this sub-limit shall not apply to such Insured's liability: (a) to the Passengers (and for their baggage and personal effects) of any aircraft operator to whom the policy affords cover for liability to its Passengers arising out of its operation of Aircraft; (b) for cargo and mail while it is on board the Aircraft of any aircraft operator to whom the policy affords cover for liability for such cargo and mail arising out of its operations of Aircraft. Notwithstanding any other liability for which coverage is afforded under this policy, coverage provided under this Endorsement shall apply solely to the following: PART ONE - LIABILITY COVERAGES. PART THREE - ADDITIONAL COVERAGES UNDER COVERAGE T: SEARCH AND RESCUE EXPENSES, COVERAGE U: RUNWAY / AIRCRAFT FOAMING, AIRPORT CRASH FIRE & RESCUE AND EMERGENCY OR UNEXPECTED LANDING, AND COVERAGE V: TRIP INTERRUPTION EXPENSE. PART FOUR - MEDICAL EXPENSES. AUTOMATIC TERMINATION To the extent provided below, coverage extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances: (i) All Coverage - upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following countries: France, the People's Republic of China, the Russian Federation, the United Kingdom, the United States of America; GLD52E (1/05) Page 1 of Endorsement No. 13 (ii) Any coverage extended in respect of the deletion of sub-paragraph (a) of War, Hi-jacking and Other Perils Exclusion 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 coverage 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 coverage 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) The Company or its Aviation Managers 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 G.M.T. on the day on which notice is given. (b) Limited Cancellation (48 hours) Following a hostile detonation as specified in paragraph 4. (ii) above, the Company or its Aviation Managers may give notice of cancellation of one or more parts of the coverage provided by paragraph 1. of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of War, Hi-jacking and Other Perils Exclusion Clause AVN48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours G.M.T. on the day on which notice is given. (c) Cancellation (7 Days) The coverage provided by this Endorsement may be cancelled by either the Company, its Aviation Managers or the Insured by giving notice to become effective on the expiry of seven days from 23.59 hours G.M.T. on the day on which such notice is given. (d) Notices All notices referred to herein shall be in writing. All other provisions of this policy remain the same. This endorsement becomes effective August1,2012 _ to be attached to and hereby made a part of Policy No. _GM 023086704-01 issued to EXECUTIVE EXPRESS AVIATION, LLC DBA AIR CHARTER, LLC, JA FLIGHT SERVICES —__ By NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, P PA. Endorsement No. 13 - — ah Date of Issue August 3, 2012 AM (Authorized Representative) GLD52E (1/05) Page 2 EXTENDED COVERAGE ENDORSEMENT - ILLINOIS WAR RISK FOR PHYSICAL DAMAGE COVERAGE, EXTORTION, AND HI-JACKING EXTRA EXPENSE COVERAGE In consideration of $ INCL. additional premium, this policy is amended as follows: This coverage is subject to all the terms and conditions shown both in this policy as well as this endorsement. It does not change any coverage or terms except as specifically stated below. The Insured is responsible for using all reasonable efforts to ensure that all required permits for Aircraft operations as well as all state and local laws are complied with in the country of operation or the country where a loss or expense is incurred. SECTION ONE WAR RISK COVERAGE FOR AIRCRAFT PHYSICAL DAMAGE We will pay for the physical loss of or Physical Damage to any Scheduled Aircraft (unless excluded by Exclusion (G) below) that is caused by an Occurrence during the policy period arising out of any of the following perils: (a) war, whether declared or undeclared, invasion, acts of foreign enemies, hostilities, civil war, rebellion, revolution, insurrection, martial law, military or usurped power or any attempt of usurpation of power; (b) any strikes, riots, civil commotions or labor disturbances; (c) any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional; (d) any malicious act or act of sabotage; (e) confiscation, nationalization, seizure, restraint, detention, appropriation, requisition for title, use by, or under the order of any government, public or local authority, whether civil, military or de facto; (f) hi-jacking or any unlawful seizure or wrongful exercise of control of a Scheduled Aircraft or crew In-Flight (including any attempt at such seizure or control) made by any person or persons on board the Scheduled Aircraft acting without the consent of the Insured. This section also covers the physical loss of or Physical Damage to a Scheduled Aircraft while that Scheduled Aircraft is outside the control of the Insured because of any of the above perils. The Alrcraft will be covered until its safe return to the Insured. The Scheduled Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Scheduled Aircraft to the Insured at an airfield not excluded by the geographical limits of this endorsement and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress). SECTION TWO "EXTORTION, HI-JACKING, AND CONFISCATION EXPENSE COVERAGE" Extortion, Expense Coverage Subject to the limits described below, the Company will reimburse the Named Insured for ninety percent (90%) of any payment properly made for threats made during the policy period against any Scheduled Aircraft covered by this endorsement. GLD426-IL (2/09) Page 1 of Endorsement No. _14 Hi-jacking and Confiscation Expense Coverage Subject to the limits described below, we will reimburse the Named Insured for ninety percent (90%) of any required extra expenses incurred following any type of confiscation or hi-jacking that takes place during the policy period as described in paragraphs (e) and (f) of SECTION ONE of this endorsement. Limits of the Company’s Liability for Section Two Coverages The most that we will reimburse the Named Insured for any one Occurrence is an amount equal to ninety percent (90%) of the net cost to the Named Insured of any payment(s) made but not exceeding: (A) ninety percent (90%) of the Insured Value of the Scheduled Aircraft involved, or (B) $1,000,000.00, whichever is less. The Insured warrants that the remaining ten percent (10%) of any payment made is not insured elsewhere. For the purpose of this coverage, any series of related events, losses or expenses connected to any hi-jacking, extortion, or confiscation will be considered one Occurrence. Exclusions Applicable to All Coverages Provided by this Endorsement This endorsement will not cover any loss, damage or expense arising out of: (A) war, whether declared or undeclared between any of the following countries: The United Kingdom, The United States of America, France, The Russian Federation, or The Peoples Republic of China. If any Scheduled Aircraft covered by this endorsement is in the air when an outbreak of war occurs, this exclusion will not apply until that Scheduled Aircraft completes its first landing; (B) detonation, whether hostile or otherwise, of any weapon of war employing atomic or nuclear fission and/or fusion or any other similar reaction; (C) any loss or damage caused by radioactive force or matter; (D) any failure to provide any type of bond, security or any other financial cause whether or not required under a court order; (E) the repossession or any attempt at repossession by any person or organization having any legal title or lien on the Scheduled Aircraft or any other type of legal contractual relationship with the Insured; (F) any type of delay, loss of use or any other type of consequential loss whether or not the Scheduled Aircraft is lost or damaged except as specifically provided under the SECTION TWO coverages of this endorsement; (G) any Occurrence involving the following Scheduled Aircraft (if any) which the Named Insured has elected not to cover by this endorsement: Year Make and Model Registration No. Year Make and Model Reaistration No. GLD426-IL (2/09) Page 2 of Endorsement No._ 14 AUTOMATIC