# NON-PREMIUM ENDORSEMENT

**Issued by:** City Insurance Company
**Endorsement No.:** 2 Revised

**Policy Number:** HEC 1 19 84 10
**Name Insured:** International Business Machines Corp., Etal
**Effective Date and Time of Endorsement:** 5-21-81
**Date Prepared:** 7-14-81
**Date Expiration:** 5-21-82
**Producer:** Johnson & Higgins
**Producer Code:** 50138-081

It is agreed that this policy is hereby amended as indicated. All other terms and conditions of this policy remain unchanged.

## AIRCRAFT "PRODUCTS HAZARD" EXCLUSION

In consideration of the premium charged, it is understood and agreed that this policy shall not apply to any liability arising out of aircraft "products hazard" or reliance upon any representation or warranty made with respect thereto, or to any liability arising out of the grounding of any aircraft.

"Aircraft Products" means aircraft (including missiles, spacecraft, and/or any ground support or control equipment used therewith) and any other goods or products manufactured, sold, handled or distributed or services provided or recommended by the insured or by others trading under his name for use in the manufacture, repair, operation, maintenance or use of any aircraft.

"Grounding" shall mean 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 the insured or manufactured, assembled or processed by any other person or organization according to specifications, plans, suggestions, orders or drawings of the insured or with tools, machinery or other equipment furnished to such persons or organizations by the insured, whether such aircraft so withdrawn are owned or operated by the same or different persons or organizations.