**PREMIUM DISCOUNT ENDORSEMENT—TEXAS**

**(General Liability Insurance)**

**POLICY NO:** 8359700  
**EFFECTIVE DATE:** DEC. 31, 1962  

**Named Insured:** INTERNATIONAL BUSINESS MACHINES CORPORATION, ETAL

This endorsement is issued by that company named below which is the insurer under the policy designated above issued to the Named Insured and forms a part of said policy as of the effective date hereof, at the hour stated in the policy Declarations.

It is agreed that the premium pertaining to Texas for General Liability and Medical Payments insurance is subject to discount in accordance with the following procedure:

1. **Texas General Liability Standard Premium:** Such premium pertaining to Texas computed in accordance with the provisions of the policies designated in paragraph 3 hereof, other than this endorsement, and exclusive of the application of any retrospective rating plan, shall be known as the Texas General Liability Standard Premium.
2. **Total Standard Premium for All States:** The General Liability and Medical Payments premium computed in accordance with the provisions of the policies designated in paragraph 3 hereof, other than this endorsement and exclusive of the application of any retrospective rating plan, any Automatic Premium Adjustment Endorsement, any Premium Return Plan Endorsement, or other Premium Discount Endorsement, shall be known as the Total Standard Premium.
3. **Policy Numbers:** 3359700  
   **Estimated Standard Premium:** 149,559.53

**Total:** 149,559.53

4. **Premium Discount — Texas**
   (a) The initial premium discount percentage to be applied to Texas General Liability Standard Premium is 22.3%. The final premium discount percentage to be applied to Texas General Liability Standard Premium shall be determined in accordance with paragraphs (b), (c) and (d) following.

(Continued on reverse side)

**ZURICH INSURANCE COMPANY**  
**AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY**

**JOHNSON & HIGGINS**  
**GS:AD**

**Countersigned:**  
**Duly authorized agent:**  
**ATTORNEY IN FACT:**  
**Form 4026-5-A. (Texas General Liability)**  
**100 copy**  
**END. #33**  
**Z 006838**