# AIRCRAFT PRODUCTS EXCLUSION AND GROUNDING ENDORSEMENT

| Named Insured | International Business Machines Corporation |
| --- | --- |
| Endorsement Number | 36 |

| Policy Symbol | HDO |
| --- | --- |
| Policy Number | G71237606 |
| Policy Period | 05/21/2019 to 05/21/2020 |
| Effective Date of Endorsement |  |

| Issued By (Name of Insurance Company) | ACE American Insurance Company |

## THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

**COMMERCIAL GENERAL LIABILITY COVERAGE FORM**

A. **Section I.- Coverages, Coverage A-Bodily Injury and Property Damage Liability, 2. Exclusions, is amended to add:**

This insurance does not apply to:
- "Bodily injury" or "property damage", arising out of the "aircraft products and completed operations hazard" or reliance upon any representations or warranties made with respect to the "aircraft products and completed operations hazard", nor to any "bodily injury" or "property damage" arising out of the "grounding" of any "aircraft".

B. **The following definitions are added to Section V – Definitions:**

- **"Aircraft products-completed operations hazard"**, includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" or "your work", including services and labor performed by you, or on your behalf, in connection with "aircraft", missiles, space craft, as well as the ground support or control equipment used therewith, and any goods or products manufactured, sold, handled or distributed by you or your predecessor companies, as well as any services provided or recommended by you or your predecessor companies, for use in the manufacture, repair, operation, maintenance or use of any "aircraft". Also included are any articles furnished by you and installed in "aircraft" or used in connection with "aircraft" or for spare parts for "aircraft", including ground handling tools and equipment, as well as training aids, instruction manuals, blueprints, engineering or other data, engineering or other advice, and labor relating to such "aircraft" or articles, except:
  - (1) Products that are still in your physical possession; or
  - (2) Work that has not yet been completed or abandoned.

- **"Grounding"** means the withdrawal of one or more "aircraft" from flight operations or the imposition of speed, passenger or load restrictions on such "aircraft", by reason of the existence of or alleged or suspected existence of any defect, fault or condition in such "aircraft" or any part thereof sold, handled or distributed by you or manufactured, assembled or processed by any other person or organization according to your specifications, plans, suggestions, orders or drawings or with tools machinery or other equipment furnished to such persons or organizations by you, whether such "aircraft" so withdrawn are owned or operated by the same or different persons, organizations or corporations. A "grounding" will be deemed to commence on the date of an "occurrence" which discloses such condition or on the date an "aircraft" is first withdrawn from service on account of such condition, whichever occurs first.

- **"Aircraft"** means a vehicle designed to be used primarily in the air and to be supported by the dynamic reaction of the air upon the vehicle's wings or rotorblades, and/or by the vehicle's buoyancy in the air. The term "aircraft" however, excludes missiles, spacecraft and the ground support or control equipment used therewith.

MS-13630 (05/17)
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