**Endorsement No:** 3  
**Additional Premium:**  
**Return Premium:**  

**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 OR 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 SPACECRAFT) 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.

AIRCRAFT PRODUCTS HAZARD LIABILITY INCLUDES BODILY INJURY AND PROPERTY DAMAGE ARISING OUT OF THE NAMED INSURED'S AIRCRAFT PRODUCTS OR RELIANCE ON A REPRESENTATION OR WARRANTY MADE AT ANY TIME WITH RESPECT THERETO, 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."

"GROUNDS" SHALL MEAN THE WITHDRAWAL OF ONE OR MORE AIRCRAFT FROM FLIGHT OPERATIONS OR THE IMPOSITION OF SPEED, PASSENGER OR LOAD RESTRICTIONS ON AIRCRAFT, BY REASON OF THE EXISTENCE OR ALLEGED OR SUSPECTED EXISTENCE OF DEFECT, FAULT OR CONDITION IN SUCH AIRCRAFT OR ANY PART THEREOF SOLD ED OR DISTRIBUTED BY THE INSURED OR MANUFACTURED, ASSEMBLED OR PROCESSED BY OTHER PERSON OR ORGANIZATION ACCORDING TO SPECIFICATIONS, PLANS, STIONS ORDERS OR DRAWINGS OF THE INSURED OR WITH TOOLS, MACHINERY OR EQUIPMENT FURNISHED TO SUCH PERSONS OR ORGANIZATIONS BY THE INSURED, OR SUCH AIRCRAFT IS WITHDRAWN OR OWNED OR OPERATED BY THE SAME OR ENT PERSONS OR ORGANIZATIONS.

The terms contained shall be held to vary, alter, waive or change any of the terms, limits or conditions herein except as hereinabove set forth.

**Effective Date:** MAY 21, 1980

and forming part of Policy No.75-102049 of the

**AIU INSURANCE COMPANY**

**AMERICAN INTERNATIONAL UNDERWRITERS**

**Signature:** [Signature]