# CANOPIUS Bermuda

**Endorsement No:** 002

**This endorsement effective:** May 21, 2010 (at 12:01AM prevailing time at the address of the Named Insured as shown in Item 1(b) of the Declarations)

**Forms a part of Policy No:** IBM-141/CUBLBSF02-10

**Issued to:** International Business Machines Corporation

**By:** Canopius Underwriting Bermuda Limited

## CHOICE OF LAW ENDORSEMENT - IV

### a.
The Insured seeking coverage for an award of "punitive damages", brings a "suit" against us seeking a declaration of coverage under the policy in a jurisdiction that does not recognize or permit the insurability of the "punitive damages" award; or

### b.
The court that enters the judgment awarding "punitive damages" against the Insured also orders that the Insured may not seek insurance coverage for "punitive damages".

#### (ii)
"Punitive damages" will not be considered damages to which this insurance applies, and we will have no obligation with respect to such damages, if the damages are assessed against the Insured and arise out of the Insured's intentional, willful or wanton conduct. However, this limitation shall not apply if the award is assessed against the named Insured and arises out of the intentional, willful or wanton conduct of an "employee" or agent of the named Insured and the named Insured had no knowledge of the "employee's" or agent's intentional, willful or wanton conduct.

#### (iii)
Any award of "punitive damages" and compensatory damages arising out of the same judgment will be added together and the sum shall be used to determine whether or not the "retained limit" has been exhausted;

### 2.
Pertains to regulation under New York Insurance Law, or regulations issued by the Insurance Department of the State of New York pursuant thereto, applying to insurers doing insurance business, or issuance, delivery or procurement of policies of insurance, within the State of New York or as respect risks or insured entities situated in the State of New York; or

### 3.
Is inconsistent with any provision of this Policy; provided, however, that the provisions, stipulations, exclusions and conditions of this Policy are to be construed in an even handed fashion as between the Insured and the Company;