End 002-04/14
Form BSF-03
Page 1 of 1

**ADDITIONAL/RETURN PREMIUM: NIL**

**AMENDMENT OF CONDITION 3. (CANCELLATION) ENDORSEMENT**

It is agreed and acknowledged that the following paragraph of Condition 3. (Cancellation) to this Policy is deleted in its entirety:

"Notwithstanding any other provision in this policy, in the event that a financial strength rating is issued (1) below "A-" (A minus) by A.M. Best Co. or (2) below "BBB" by Standard & Poor's Rating Services, for the Insurer (hereinafter "Credit Rating Downgrade"), this Policy may be canceled by the Named Insured by mailing written notice to the Company or by surrender of this Policy to the Company or its authorized agent. If this Policy is canceled by the Named Insured after such Credit Rating Downgrade, the Company shall retain the pro rata proportion of the premium herein."

Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, exclusions or limitations of the Policy referenced below, except as expressly stated herein.

The effective date of this endorsement is May 21, 2015
All other terms and conditions remain unchanged.
This endorsement is attached to and made a part of Policy No. IBM-0025/BSF03
of ACE Bermuda Insurance Ltd.

Issued to:
International Business Machines Corporation

Date of Issue: July 15, 2015
By [Signature]
Authorized Representatives

End No. 2