AIRCRAFT LEASE AND SERVICES AGREEMENT
This Aircraft Lease and Services Agreement (the "Agreement") is entered
into as of this 31st day of March 1998, by and between American Aviation,
L.L.C., a limited liability company organized and existing under the laws
of the State of Missouri ("AALLC") and American Aviation Charters, L.L.C.,
a limited liability company organized and existing under the laws of the
State of Louisiana ("Owner");
WHEREAS, AALLC desires to the sell to Owner the aircraft described in
Exhibit A attached hereto (the "Aircraft"); and
WHEREAS, to induce Owner to purchase the Aircraft, AALLC has agreed to
lease the Aircraft from Owner for charter operations under AALLC's Federal
Aviation Regulation ("FAR") Part 135 operating certificate and related
operations specifications (the "Operating Certificate"); and
WHEREAS, Owner desires that AALLC lease and operate the Aircraft in
accordance with the terms and conditions stated herein.
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, and for good and valuable consideration, the parties
hereby agree as follows:
1. LEASE OF THE AIRCRAFT. Owner hereby enters into a non-continuous
lease of the Aircraft to AALLC during the Term of this Agreement, only
during such time as the Aircraft shall be operated on AALLC's Operating
Certificate pursuant hereto such time periods herein referred to as "Lease
Periods".
2. TERM. The Term shall commence on the 31st day of March 1998 and shall
continue for a period of ninety days terminating on June 28, 1998 unless
terminated earlier in accordance with this Agreement (the "Term").
3. CONDITION OF THE AIRCRAFT.
3.1 MAINTENANCE AND REPAIR COSTS. Owner agrees that if AALLC performs
any maintenance or repairs to or for the Aircraft for any reason deemed
reasonably necessary by AALLC or Owner, such work shall be billed at
AALLC's posted prices for service and parts and Owner shall pay for all
such maintenance and repairs at the time that AALLC performs the services
upon the Aircraft. In the event an AALLC-authorized repair station
performs any maintenance or repairs to or for the Aircraft for any reason
deemed reasonably necessary by AALLC or Owner, Owner shall pay the repair
station directly and be solely responsible for the payment of any such
work or parts.
3.2 FLIGHT CREWS. Owner shall report to AALLC's Flight Control, all
commercial duty and flight times of any person who Owner nominates to
operate the Aircraft in order to permit AALLC to determine whether the
flight crew has sufficient flight and duty time to operate each Part 135
Aircraft flight. OWNER HEREBY RELINQUISHES AND GRANTS TO AALLC EACH AND
EVERY RIGHT OWNER MAY HAVE TO CONTROL, DIRECT, INSTRUCT OR IN ANY WAY
INFLUENCE THE MANNER OF PERFORMANCE OF ALL FLIGHT OPERATIONS BY ANY FLIGHT
CREW MEMBERS DURING EACH AND EVERY PERIOD THAT THE AIRCRAFT IS LEASED
HEREUNDER TO AALLC FOR PART 135 OPERATIONS. OWNER ACKNOWLEDGES THAT
DURING EACH AND EVERY LEASE PERIOD, THE FLIGHT CREW MEMBERS WILL BE
TEMPORARY EMPLOYEES OF AALLC AND THE FLIGHT CREW MEMBERS SHALL SERVE UNDER
THE EXCLUSIVE DIRECTION AND CONTROL OF AALLC. THE TERMS AND CONDITIONS OF
THE TEMPORARY EMPLOYMENT OF THE FLIGHT CREW MEMBERS ARE SET OUT IN THE
TEMPORARY EMPLOYMENT AGREEMENT BETWEEN THE OWNER AND AALLC DATED March 31,
1998 attached hereto as Exhibit 2. Prior to commencement of Part 135
flight operations, each Flight Crew member shall sign a letter
substantially in the form of Exhibit 3 hereto which AALLC shall
acknowledge, and which will be retained by AALLC in the individual pilot
file. Owner shall immediately report to AALLC any information it may
receive with respect to any governmental action of which it has knowledge
affecting the licenses and permits and medical certifications of flight
crew members, including but not limited to all modifications, suspensions
or terminations thereof.
4. CHARTER BOOKINGS AND BILLING.
4.1 Owner shall serve and is hereby appointed a non-exclusive agent of
AALLC for the limited purpose of booking charter service, and collecting
and disbursing the revenues therefrom, for the Aircraft listed herein
only. Owner may not, as a non-exclusive agent of AALLC, book or xxxx for
charter services on any aircraft other than the Aircraft. Owner shall
indemnify, hold harmless and reimburse AALLC on demand for any refunds or
claims for fees or expenses paid which arise out of the negligent actions
or negligent failure to act on the part of Owner or its employees.
4.2 As a non-exclusive agent of AALLC, Owner may advertise AALLC's
charter service to the public. All advertising, whether written, visual
or verbal, must indicate that the charter service is "Operated By American
Aviation LLC" and must be approved in writing by AALLC prior to release or
publication. Owner may not advertise or represent the availability of any
aircraft other than the Aircraft.
5. OPERATION OF AIRCRAFT BY AALLC.
5.1 OPERATING CERTIFICATE. AALLC shall comply with the requirements of
and shall retain operational control of the Aircraft under FAR Part 135
during Lease Periods.
5.2 MAINTENANCE AND REPAIRS. Once the Aircraft is initially found
suitable for charter operations, AALLC or a AALLC-approved maintenance
facility shall perform all maintenance and repairs to the Aircraft in
accordance with AALLC's FAA-approved maintenance program during the Term
of this Agreement. AALLC shall perform maintenance and/or repairs to the
Aircraft only upon notice to and consent from Owner, or Owner's
representative. AALLC may terminate this Agreement immediately upon
written notice to Owner in the event any subsequent inspection of the
Aircraft or maintenance records uncovers any mechanical, structural or
other conditions unacceptable to AALLC, or in violation of Federal
Aviation Regulations, in its discretion.
5.3 FLIGHT CREWS. AALLC or a training facility approved by AALLC shall
provide all training for any person authorized to operate the Aircraft
during Lease Periods. Such flight crew members will be trained and
checked in accordance with AALLC's FAA-approved training program. During
Lease Periods, such crew members shall serve under the exclusive direction
and control of AALLC. AALLC shall have the exclusive right to refuse to
allow any crew member to participate in charter operations at its sole
discretion.
5.4 COMPLIANCE WITH LAWS. AALLC operate the Aircraft in accordance with
all applicable laws and regulations, including all FARs.
5.5 COMPLIANCE WITH ANTI-DRUG PLAN. Owner agrees to obtain and initiate
coverage under an FAA approved Anti-Drug Program or establish its own
program as required by FAR 135.1 (c). Owner will provide proof of such
coverage by providing AALLC a copy of the FAA approval letter bearing
Owner's unique approval number. Owner will maintain its program in good
standing for all covered employees and vendors (as defined by the rule).
Owner shall notify AALLC immediately if Owner ceases to be in compliance
with it approval plan in which case all Part 135 operations will cease
immediately.
6. OPERATION OF THE AIRCRAFT BY OWNER. When Owner is operating the
Aircraft under the rules of FAR Part 91, Owner will have exclusive
operational control of the Aircraft and AALLC shall have no responsibility
or liability to Owner for any such operations. Owner shall ensure that
the Aircraft are maintained in accordance with the relevant AALLC Manuals
and procedures.
7 TAXES. Owner shall pay on its own behalf and on behalf of AALLC all
taxes (including but not limited to), federal excise taxes, fees,
assessments, sales tax, personal property tax, license and registration
fees together with all fines and penalties assessed by any governmental
taxing authority ("Taxes") which relate in any way to the ownership, use
or operation of the Aircraft or with respect to any charter flight booked
and billed by Owner; provided that Owner shall be entitled to any fuel tax
credit(s) which apply to operations of the Aircraft under part 135. Taxes
paid by Owner shall not include those federal excise and/or sales taxes
collected by AALLC for charter flights booked and billed by AALLC, and
those Taxes based upon AALLC's income.
8. RECORDKEEPING; AUDIT AND INSPECTIONS.
8.1 Among its obligations as the holder of the Operating Certificate,
AALLC specifically acknowledges its obligation to maintain an individual
record of each pilot used in Part 135 operations pursuant to FAR Section
135.63(a)(4).
8.2 As support for AALLC's obligation to discharge its record keeping
requirements as the holder of the Operating Certificate, Owner, as non-
exclusive agent for AALLC, shall at all times and for two years following
termination of this Agreement keep complete and accurate books, records,
Aircraft logs and accounts from which it shall be determined, (i) the
amount of charges to be paid to AALLC, (ii) all flight crew duty times,
(iii) all maintenance performed on the Aircraft; and (iv) all Aircraft
flights and operating hours, pursuant to and during the term of this
Agreement. Owner shall maintain such books, records, accounts and logs in
accordance with generally accepted accounting principles and FAA
regulations.
8.3 All such accounts and records shall, at all reasonable times, be
accessible to and open for inspection, examination, copying and audit by
the other party or its designated representative, such inspection,
examination, copying and audit not to interfere with the ability of the
party being inspected to conduct its normal business. Either party shall
have the right, but not the obligation, to inspect the Aircraft at all
reasonable times that will not interfere with the operation of the
aircraft or the other party's ability to conduct its normal business.
AALLC may terminate this Agreement immediately upon telephonic or written
notice to Owner in the event any subsequent inspection of the Aircraft or
maintenance records uncovers any mechanical, structural or other
conditions related to safety of flight, operation, or airworthiness
unacceptable to AALLC, or in violation of Federal Aviation Regulations, in
its discretion.
9. INDEMNIFICATION.
9.1 INDEMNIFICATION BY OWNER. Owner hereby agrees to defend, indemnify
and hold AALLC and its affiliates and their respective officers, members,
directors, employees and agents (the "AALLC Indemnified Parties")
harmless from and against any and all liabilities, claims, suits,
judgments, damages, losses, awards, fines, penalties, costs and expenses,
including reasonable attorney fees and costs associated therewith
(collectively the "Claims"), arising from, but not limited to, Taxes as
defined in Section 7, injury or death of persons or the loss, damage or
destruction of property arising out of or caused by any intentional
misrepresentation or fraudulent statement made by Owner with respect to
this Agreement, any damage or loss to the extent caused by Owner's
negligence or willful misconduct, negligent actions or omissions of or the
improper performance of the duties of the flight crew members nominated by
Owner and employed by AALLC during the Term of this Agreement, including
but not limited to Claims arising from a flight crew member's breach of
the FARs.
9.2 INDEMNIFICATION BY AALLC. AALLC hereby agrees to defend, indemnify
and hold Owner, its parent corporations, affiliates, subsidiaries, their
directors, officers, employees and agents (the "Owners Indemnified
Parties") harmless from and against any and all liabilities, claims,
suits, judgments, damages, losses, awards, fines, penalties, costs, and
expenses, including reasonable attorney's fees and costs associated
therewith (collectively the "Claims"), arising from, but not limited to,
Taxes, injury or death of persons or the loss, damage or destruction of
property arising out of or caused by any intentional misrepresentation or
fraudulent statement made by AALLC with respect to this Agreement.
9.3 NOTIFICATION AND SURVIVAL. The Indemnified Party shall give prompt
and timely written notice to the indemnifying party of any claim for which
an Indemnified Party seeks indemnity herein, and the indemnifying party
shall defend against same with counsel reasonably acceptable to the
Indemnified Party. The Indemnified Party shall cooperate in the defense
of the claim to the extent reasonable and practicable under the
circumstances. The provisions of Section 9 shall survive the termination
of this Agreement.
10. INSURANCE; RISK OF LOSS.
10.1 INSURANCE BY OWNER. Prior to the commencement of charter flight
operations, Owner will obtain the insurance policies described on Exhibit
4 and will maintain policies in force for the Term. All such insurance
shall:
(a) be issued by a company or companies of recognized
responsibility and insure the AALLC Indemnified Parties;
(b) be an occurrence policy naming the AALLC Indemnified Parties,
charter customers and their successors and assigns as additional insureds
and contain a waiver of subrogation in favor of all additional insureds;
(c) be primary without any right of contribution from any insurance
maintained by the AALLC Indemnified Parties;
(d) provide the AALLC Indemnified parties with thirty days prior
written notice of cancellation or material change affecting the parties'
interests; and
(e) insure Owner's contractual liability to the AALLC Indemnified
Parties contained in this Agreement.
Owner will furnish to AALLC certificates of insurance prior to the earlier
of charter flight operations or the commencement of Aviation Services by
AALLC which demonstrate that Owner has met the requirements of this
Section.
10.2 INSURANCE BY AALLC. Prior to the commencement of this Agreement,
AALLC shall will obtain the insurance policies described on Exhibit 4 and
will maintain such policies in force for the Term. All such insurance
shall:
(a) be issued by a company or companies of recognized
responsibility and insure Owner and its directors, officers and employees,
successors and assigns;
(b) be an occurrence policy naming Owner and its respective
directors, officers, employees, successors and assigns as additional
insureds and obtain a waiver of subrogation in favor of all additional
insureds;
(c) provide Owner with thirty days' prior written notice of a
cancellation or material change affecting the parties' interests;
(d) be primary without any right of contribution from any insurance
maintained by Owner; and
(e) insure AALLC's contractual liability contained in this
Agreement.
AALLC will furnish to Owner certificates of insurance prior to charter
flight operations which demonstrate that AALLC has met the requirements of
this Section.
10.3 Risk of loss or damage to the Aircraft shall be borne by Owner.
If, during the term of this Agreement, the Aircraft is destroyed, lost or
damaged beyond repair, this Agreement shall terminate immediately.
11. PAYMENT
11.1 INVOICES. AALLC shall forward all invoices relating to the Aircraft
to Owner at the following address:
American Aviation Charters, L.L.C.
000 Xxxxxxx Xx.
Xxxxxxxxx, XX 00000-0000
Attn: Xxxxx Xxxxx
Fax: 000-000-0000
Telephone: 000-000-0000
Owner shall pay all invoices to the account specified by AALLC within
90 days of the date of the invoice.
12 GOVERNING LAW. This Agreement shall be governed in all respects,
including validity, interpretation and effect, by the laws of the State of
Louisiana without giving effect to the principles of conflicts of law
thereunder.
13. DEFAULT AND REMEDIES.
13.1 If either party breaches any of the provisions of this Agreement
and fails to cure such breach within ten days after receipt of written
notice from the non-breaching party, the non-breaching party may terminate
this Agreement without prejudice to any rights the non-breaching party may
have against the breaching party.
13.2 No failure or delay on the part of either party hereto in
exercising any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or
power preclude any other further exercise of any such right or power.
13.3 AALLC's and Owner's rights and remedies with respect to any of the
terms and conditions of the Agreement shall be cumulative and not mutually
exclusive and shall be in addition to all other rights and remedies which
either party possesses at law or in equity except as otherwise provided in
this Agreement.
14. TERMINATION. Either party to this Agreement shall have the right,
with or without cause, to terminate this Agreement by giving thirty (30)
days prior written notice to the other party during the Term. This
Agreement shall terminate automatically in the event AALLC no longer has
the right to perform charter operations pursuant to the Operating
Certificate for any reason and Owner shall have no claim for any damages
against AALLC which result from any such termination. In the event the
Operating Certificate is suspended for any reason, Owner and AALLC shall
be relieved of all obligations under this Agreement and Owner shall have
no claim for damages against AALLC which result from any such suspension.
15. FORCE MAJEURE. AALLC shall not be liable for any delay or failure in
the performance of any obligation under this Agreement where such failure
or delay is the result of any cause or matter beyond AALLC's reasonable
control, including but not limited to Acts of God or the public enemy,
acts or failures to act by any relevant government authority, civil war or
insurrection or riots, fires or explosions or serious accidents, strikes
or labor disputes. AALLC agrees to notify Owner promptly of the
occurrence of any such cause.
16. MISCELLANEOUS.
16.1 The relationship between Owner and AALLC shall be that of lessor
and lessee with respect to operations under Part 135, except as provided
in Sections 3.3, 4.1 and 4.2 of this Agreement and independent contractors
with respect to any other services provided hereunder. Without limiting
the foregoing, except as specifically authorized in Section 4, AALLC shall
not be the agent of Owner.
16.2 This Agreement constitutes the entire agreement, both written and
oral, between the parties or their respective representatives with respect
to the subject matter hereof and is not intended to confer upon any other
person any rights or remedies hereunder not expressly granted thereto.
This Agreement shall not be further amended or modified unless in writing
duly signed by the parties hereto.
16.3 None of the parties may assign any of its rights or duties under
this Agreement without the prior written consent of the other, such
consent not to be unreasonably withheld or delayed.
16.4 The covenants, agreements, indemnifications, representations and
warranties made herein shall survive the execution and delivery of this
Agreement and the consummation of the transactions described herein.
16.5 This Agreement may be executed in one or more counterparts each of
which shall be deemed an original, all of which together shall constitute
one and the same agreement.
16.6 The captions contained in this Agreement are for convenience
purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
16.7 The provisions of this Agreement shall be deemed independent and
severable and the invalidity, partial invalidity or unenforceability of
any one provision or portion of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement. Any
provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability and any prohibition or
unenforceability in any particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.
SIGNATURES ON NEXT PAGE
IN WITNESS WHEREOF the parties hereto have entered into this Agreement on
the date first above written.
AMERICAN AVIATION, L.L.C. AMERICAN AVIATION CHARTERS, L.L.C.
By:/s/ Xxxxx X. Xxxxxx By:/s/ Xxxxx Xxxxx
Name: Xxxxx X. Xxxxxx Name: Xxxxx Xxxxx
Title: Member Title: Manager
EXHIBIT 1
AIRCRAFT
1. One (1) used Beech 300 aircraft which consists of an airframe bearing
FAA Registration No. N3AH and Manufacturer's Serial No. FA-130 together
with its installed Xxxxx & Xxxxxxx PT6A-60A engines bearing manufacturer's
serial numbers PCE 95267 and PCE 95264.
2. One (1) used Cessna A185F aircraft which consists of an airframe
bearing FAA Registration No. N9667Q and Manufacturer's Serial No. 18503785
together with its installed Continental IO550D17B engine bearing
manufacturer's serial number 284183-R.
3. One (1) used Cessna 172N aircraft which consists of an airframe
bearing FAA Registration No. N4693J and Manufacturer's Serial No. 17273663
together with its installed Continental O-320-H2AD engine bearing
manufacturer's serial number L-5620-7673655.
4. One (1) used Cessna 414 aircraft which consists of an airframe bearing
FAA Registration No. N414WE and Manufacturer's Serial No. 414A-0309
together with its installed Continental TSIO-520-NB engines bearing
manufacturer's serial numbers L-514074 and R-509722.
EXHIBIT 2
AGREEMENT
This Agreement (this "Agreement") is entered into as of the 31st day of
March 1998 by and between American Aviation, L.L.C. ("AALLC") and American
Aviation Charters, L.L.C. ("Owner").
WHEREAS, Owner is the employer of certain FAA-licensed crew members who
are qualified to operate the aircraft attached as Exhibit 1; and
WHEREAS, AALLC has occasional need for the services of an FAA-licensed
pilot qualified to operate such aircraft; and
WHEREAS, as the employer for such flight crew, Owner shall become the
contractor for the services of such flight crew members.
NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, the parties hereto agree as follows:
1. AALLC hereby appoints Owner and Owner hereby agrees to nominate
temporary flight crews ("Temporary Crews") to AALLC from those crew
members of Owner who AALLC determines are properly trained and qualified
in accordance with the Federal Aviation Regulations and insurance
requirements during each and every period requested by AALLC for the
operation of its aircraft and during such other periods as AALLC may
require the services of the Temporary Crew.
2. The parties hereby agree that AALLC shall be the additional employer
of the Temporary Crews and the Temporary Crews correspondingly shall be
employees of AALLC during and limited to each and every period when AALLC
requests such crews for the operation of its aircraft..
3. For each flight completed with Temporary Crews aboard, AALLC shall
pay in respect of the Temporary Crews a fee of One Hundred Twenty Dollars
($120) per day ("Temporary Crew Fee"). Owner, in its capacity as
additional employer of the Temporary Crews, shall make payment to the
Temporary Crews on AALLC's behalf..
4. OWNER HEREBY RELINQUISHES AND GRANTS TO AALLC OR ITS ASSIGNEE
(WHICHEVER IS APPLICABLE) EACH AND EVERY RIGHT OWNER MAY HAVE TO CONTROL,
DIRECT, INSTRUCT OR IN ANY WAY INFLUENCE THE MANNER OF PERFORMANCE OF ALL
FLIGHT OPERATIONS BY ANY TEMPORARY CREW MEMBERS, DURING EACH AND EVERY
FLIGHT OPERATED BY AALLC OR ITS ASSIGNEE (WHICHEVER IS APPLICABLE). OWNER
ACKNOWLEDGES THAT DURING EACH AND EVERY FLIGHT OPERATED BY AALLC OR ITS
ASSIGNEE, THE TEMPORARY CREW MEMBERS WILL BE TEMPORARY EMPLOYEES OF AALLC
OR, IF THE TEMPORARY EMPLOYMENT HAS BEEN ASSIGNED, THE ASSIGNEE, AND THE
TEMPORARY CREW MEMBERS SHALL SERVE UNDER THE EXCLUSIVE DIRECTION AND
CONTROL OF AALLC OR ITS ASSIGNEE (WHICHEVER IS APPLICABLE) IN THE EVENT
THE STATUS AS TEMPORARY EMPLOYER HAS BEEN ASSIGNED.
5. Owner shall be solely responsible for any taxes, withholdings,
employment benefits, workmen's compensation insurance, disability
insurance or unemployment payments of any nature ("Charges") in respect of
the Temporary Crews. Owner further agrees that it will indemnify and hold
AALLC harmless for any Charges which may be incurred with regard to the
Temporary Crews including, but not limited to, any Charges which may
accrue as a result of Owner's failure to pay the Temporary Crews.
6. Owner shall immediately report to AALLC any information it may
receive with respect to any governmental action of which it has knowledge
affecting the licenses and permits and medical certifications of Temporary
Crew members, including but not limited to all modifications, suspensions
or terminations thereof. Owner shall not knowingly nominate a Temporary
Crew member to AALLC (i) who is not licensed, permitted and certified for
the employment described herein, or (ii) who is not trained and qualified
as required by any insurance policy carried by AALLC.
7. The terms of this Agreement shall be disclosed to any Temporary Crew
members upon request.
IN WITNESS WHEREOF the parties hereto have entered into this Agreement on
the date first above written.
OWNER:
AMERICAN AVIATION, L.L.C. AMERICAN AVIATION CHARTERS, L.L.C.
By:/s/ Xxxxx X. Xxxxxx By:/s/ Xxxxx Xxxxx
Name: Xxxxx X. Xxxxxx Name: Xxxxx Xxxxx
Title: Member Title: Manager
EXHIBIT 3
By my signature below I further certify:
During each and every period that I am operating for American Aviation,
L.L.C. ("AALLC"), I will be the temporary employee of AALLC and shall
serve under the exclusive direction and control of AALLC and shall fly
exclusively on AALLC's behalf. The terms of my temporary employment are
described in the Agreement between AALLC and American Aviation Charters,
L.L.C. ("Owner") who serves thereunder as AALLC's temporary employment
agent. Any payments for my temporary services shall be made through the
Owner as agent for AALLC. Any taxes, withholdings, employment benefits or
unemployment payments of any nature will be the responsibility of Owner.
I understand that pursuant to such Agreement, Owner has relinquished and
granted to AALLC each and every right it may have to control, direct,
instruct or in any way influence my actions during each and every period
that the aircraft is operated on AALLC's behalf, however, nothing in this
paragraph shall be construed to abridge the authority and responsibility
of the pilot in command provided in FAR 91.3
Sincerely,
Pilot Signature _______________________
Pilot Name (Print) _____________________
Date: _______________________________
Acknowledged by
American Aviation, L.L.C.
By: _____________________
Name: ___________________
Title: ___________________
Date: ___________________
EXHIBIT 4
INSURANCE REQUIREMENTS
For Owner:
1. AIRCRAFT LIABILITY INSURANCE - including Public Liability, Property
Damage and Passenger Liability Coverage in a total combined single limit
for each and every loss in the amount of $50,000,000 for the Beech 300
aircraft and $20 million for each of the Cessna aircraft.
2. ALL RISK HULL INSURANCE - Coverage must be on an agreed value basis.
Owner shall require its aircraft hull insurers to amend their policies to
waive any and all rights of subrogation which such insurers may or could
have against the additional insureds or their insurers.
3. Contract liability clause added to the aircraft liability policy.
For AALLC:
1. COMPREHENSIVE GENERAL LIABILITY- bodily injury and property damage in
the amount of $5,000,000 for each and every loss.
2. Contract liability clause added to the aircraft liability policy.
