**Insured:** International Business Machines Corp.

**Policy No.:** UFP0021773-00

**Endorsement No.:** 12

**Effective Date:** May 21, 2007

# KNOWN LOSS AND LOSS IN PROGRESS EXCLUSION

In consideration of the premium charged, it is agreed that this insurance does not apply to any liability, damage, loss, cost or expense arising out of:

1. Any injury or damage which incepts prior to the effective date of this Policy; or
2. Any Occurrence, loss or claim of which any executive officer or any manager or equivalent-level employee in the Insured’s risk management, insurance or law department had knowledge or notice prior to the effective date of this Policy. To the extent an executive officer or any manager or equivalent-level employee in the Insured’s risk management, insurance or law department was aware prior to the effective date of this Policy that injury or damage had occurred, any continuation, change or resumption of such injury or damage on or subsequent to the effective date of this Policy will be deemed to have been known prior to the effective date of this Policy; or
3. Any claim for injury or damage which is first asserted against the Insured prior to the effective date of this Policy.

All other terms and conditions of this Policy remain unchanged.

**Arch Reinsurance Ltd.**

By: _______________________
Title: Senior Vice President
Underwriting Manager
Excess Casualty

Date: September 6, 2007
Ref: OCXS 4025 Ed. 4/1/02

Page 1 of 1