# Allied World

**Endorsement No:** 1  
**This endorsement, effective:** May 21, 2016 (at 12:01 A.M. prevailing time at the address of the Named Insured as shown in Item 1(b) of the Declarations)  
**forms a part of Policy No:** C018124/004  
**Issued to:** International Business Machines Corporation

The Followed Policy is in excess of the underlying insurances and/or self-insured retentions listed in the schedule(s) of underlying policies and/or self-insured retentions attached to the Followed Policy.

It is understood and agreed that the Limits of Liability of this Policy will follow the aggregate structure of the limits of liability of the Followed Policy. It is further understood and agreed that the limits of liability of any underlying policies (except any Companion Policy(ies) (as defined below)) that are in excess of the Followed Policy but underlying to this Policy will also follow the aggregate structure of the limits of liability of the Followed Policy. For the avoidance of doubt, the scheduling above of any Companion Policy(ies) will not be construed as policies whose terms the Company follows or be construed to reinstate or create separate Limits of Liability under this Policy. Further, the fact that this Policy does not follow any Companion Policy(ies) shall not be construed to mean that this Policy does not provide coverage for punitive damages.

*“Companion Policy(ies)” means any policy(ies) scheduled above with an alphabetical reference and specified as Companion Policy(ies).*

All other terms and conditions of this Policy remain unchanged.

**ALLIED WORLD ASSURANCE COMPANY, AG**

**By:** Jason Pugi  
**Title:** VP, General Casualty  
**Date:** August 24, 2016

**Ref:** ACBSF-401c  
(AWAC Ed. 11/14)

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