The Collaborative International Dictionary of English v.0.48:

Damage \Dam"age\ (d[a^]m"[asl]j; 48), 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.
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            He that sendeth a message by the hand of a fool
            cutteth off the feet and drinketh damage. --Prov.
                                                  xxvi. 6.
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            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.
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   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.
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   Note: In common-law actions, the jury are the proper judges
         of damages.
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   Consequential damage. See under Consequential.

   Exemplary damages (Law), damages imposed by way of example
      to others. Similar in purpose to vindictive damages,
      below.

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

   vindictive damages or punitive damages, those given
      specially for the punishment of the wrongdoer.

   Syn: Mischief; injury; harm; hurt; detriment; evil; ill. See
        Mischief.
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The Collaborative International Dictionary of English v.0.48:

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.
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            [Bishops'] lives and doctrines ought to be
            exemplary.                            --Bacon.
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   2. Serving as a warning; monitory; as, exemplary justice,
      punishment, or damages.
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   3. Illustrating as the proof of a thing. --Fuller.
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   Exemplary damages. (Law) See under Damage.
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WordNet (r) 3.0 (2006):

exemplary damages
    n 1: (law) compensation in excess of actual damages (a form of
         punishment awarded in cases of malicious or willful
         misconduct) [syn: punitive damages, exemplary damages,
         smart money]