Source : Webster's Revised Unabridged Dictionary (1913)

Exemplary \Ex"em*pla*ry\, a. [L. exemplaris, fr. exemplar: cf.
   F. exemplaire. See {Exemplar}.]
   1. Serving as a pattern; deserving to be proposed for
      imitation; commendable; as, an exemplary person; exemplary
      conduct.

            [Bishops'] lives and doctrines ought to be
            exemplary.                            --Bacon.

   2. Serving as a warning; monitory; as, exemplary justice,
      punishment, or damages.

   3. Illustrating as the proof of a thing. --Fuller.

   {Exemplary damages}. (Law) See under {Damage}.

Damage \Dam"age\, n. [OF. damage, domage, F. dommage, fr.
   assumed LL. damnaticum, from L. damnum damage. See {Damn}.]
   1. Injury or harm to person, property, or reputation; an
      inflicted loss of value; detriment; hurt; mischief.

            He that sendeth a message by the hand of a fool
            cutteth off the feet and drinketh damage. --Prov.
                                                  xxvi. 6.

            Great errors and absurdities many commit for want of
            a friend to tell them of them, to the great damage
            both of their fame and fortune.       --Bacon.

   2. pl. (Law) The estimated reparation in money for detriment
      or injury sustained; a compensation, recompense, or
      satisfaction to one party, for a wrong or injury actually
      done to him by another.

   Note: In common-law action, the jury are the proper judges of
         damages.

   {Consequential damage}. See under {Consequential}.

   {Exemplary damages} (Law), damages imposed by way of example
      to others.

   {Nominal damages} (Law), those given for a violation of a
      right where no actual loss has accrued.

   {Vindictive damages}, those given specially for the
      punishment of the wrongdoer.

   Syn: Mischief; injury; harm; hurt; detriment; evil; ill. See
        {Mischief}.

Source : WordNet®

exemplary damages
     n : (law) compensation in excess of actual damages (a form of
         punishment awarded in cases of malicious or willful
         misconduct) [syn: {punitive damages}, {smart money}]