**ENDORSEMENT NO. 3 (REVISED)**

**NAME OF ASSURED:** INTERNATIONAL BUSINESS MACHINES CORP., ETAL.

**AIRCRAFT PRODUCTS HAZARDS EXCLUSION & GROUNDING**

IT IS AGREED THAT THIS POLICY SHALL NOT APPLY TO ANY LIABILITY OUT OF AIRCRAFT PRODUCTS HAZARDS OR RELIANCE UPON ANY REPRESENTATION OR WARRANTY MADE WITH RESPECT THERETO, OR TO ANY LIABILITY ARISING FROM THE GROUNDING OF ANY AIRCRAFT.

**AIRCRAFT PRODUCTS HAZARD** MEANS AIRCRAFT (INCLUDING MACHINERY THEREOF) AND ANY OTHER GOODS OR PRODUCTS MANUFACTURED, SOLD, DISTRIBUTED OR SERVICES PROVIDED OR RECOMMENDED BY THE INSURED OR OTHERS TRADING 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 AND 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 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 THE INSURED OR WITH TOOLS, MACHINERY OR OTHER EQUIPMENT FURNISHED TO SUCH PERSONS OR ORGANIZATIONS BY THE INSURED, WHETHER SUCH AIRCRAFT WITHDRAWN ARE OWNED OR OPERATED BY THE SAME OR DIFFERENT PERSONS OR ORGANIZATIONS.

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR CHANGE THE TERMS, LIMITS OR CONDITIONS OF THE POLICY, EXCEPT AS HERINAFTER SET FORTH.

THIS ENDORSEMENT IS EFFECTIVE MAY 21, 1979.

ATTACHED TO AND FORMING PART OF POLICY NO. 75-101066 OF AIU INSURANCE COMPANY

AMERICAN INTERNATIONAL UNDERWRITERS

**IBM INSURANCE** BY **James Matzner**
**JH/LS/KN** **7/17/79**
**OCEP 5 DEBILD**