# Aircraft Products Hazard Exclusion & Grounding

**Endorsement No:** 3  
**Name of Assured:** INTERNATIONAL BUSINESS MACHINES CORP., ETAL

## Aircraft Products Hazard Exclusion & Grounding

It is agreed that this policy shall not apply to any liability arising out of aircraft products hazards or reliance upon any representation warranty made with respect thereto, or to any liability arising out of the grounding of any aircraft.

"Aircraft products hazard" means aircraft (including missiles or space and any other goods or products manufactured, sold, handled or distributed under his name for use in the manufacture, repair, operation, maintenance, or use of any aircraft).

"Aircraft products hazard liability includes bodily injury and property damage arising out of the named insured's aircraft products or reliance upon a representation or warranty made at any time with respect thereto but only if the bodily injury or property damage occurs away from premises owned by or rented to the named insured after physical possession of such products has been relinquished to others."

"Groundings" 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 or alleged or suspected existence of any defect, fault or condition in such aircraft or any part thereof, handled or distributed by the insured or manufactured, assembled or procured 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tools, machinery or other equipment furnished to such persons or organizations by the insured whether such aircraft is withdrawn or owned or operated by the same or different persons or organizations.

Nothing herein contained shall be held to vary, alter, waive or change any of the terms, limits or conditions of the Policy, except as hereinabove set forth.

This endorsement is effective MAY 21, 1981

Attached to and forming part of Policy No75-102050 of the AIU INSURANCE COMPANY

AMERICAN INTERNATIONAL UNDERWRITERS

**JB/RJ**  
**5/26/81**

**Gol E**