# AIRCRAFT PRODUCTS AND GROUNDING EXCLUSION

| Named Insured | International Business Machines Corporation |
|---------------|--------------------------------------------|
| Policy Symbol  | XOO                                        |
| Policy Number | G27983212 001                             |
| Policy Period | 05/21/2016 to 05/21/2017                   |
| Endorsement Number | 002 |
| Effective Date of Endorsement | 05/21/2016 |
| Issued By (Name of Insurance Company) | ACE Property and Casualty Insurance Company |

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

This endorsement modifies insurance provided under the following:

**COMMERCIAL UMBRELLA LIABILITY POLICY**

This insurance does not apply to "bodily injury", "property damage", or "personal and advertising injury" included in the "products-completed operations hazard", and relating to, resulting from or arising out of "aircraft products" upon which you have performed "your work", or which were designed, manufactured, sold, handled, distributed, or disposed of by you, or by another trading under your name, in whole or in part, when such "aircraft products" are used in or on, or attached to any aircraft or missile or any component part or sub-assembly thereof, or in connection with the use of aircraft.

"Aircraft products" means:

1. Aircraft (including missiles, spacecrafts, or satellites and any ground support, maintenance or control equipment used therewith or any component part or sub-assembly thereof);
2. Any article furnished by an insured and installed in aircraft or used in connection with aircraft or for spare parts for aircraft;
3. Ground handling tools and equipment;
4. Training aids, instruction manuals, blueprints, maps and guides, engineering or other data, engineering or other advice and services and labor relating to such aircraft or articles described above.

This insurance does not apply to any damage of any kind whatsoever which arises out of "grounding liability."

"Grounding liability" means liability for the withdrawal or grounding of aircraft from flight operations, whether or not owned or operated by you, in the interests of safety, or for any other reason, whether or not such withdrawal or grounding was ordered by a governmental agency.

All other terms and conditions of the Policy remain unchanged.

**Authorized Agent**

XS-20745 (08/06)
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