# Endorsement No: 3

**This endorsement, effective:** May 21, 2012 (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:** 60703940

**Issued to:** International Business Machines Corporation

**by:** Chartis Excess Limited

## PREMIUM PAYMENT CONDITION

Notwithstanding anything to the contrary contained in this Policy, it is a requirement of this Policy that:

(a) the premium is to be received by the Company no later than thirty (30) days after the inception date,

(b) any installment premium is to be received by the Company no later than thirty (30) days after the effective date of such installment premium,

(c) any other additional premium is to be received by the Company no later than thirty (30) days after the effective date applicable to such additional premium, or as may otherwise be agreed by the Company.

In consideration of the foregoing:

1. failure to comply with (a) above entitles the Company to refuse to be bound by this contract of insurance,
2. failure to comply with (b) above entitles the Company to invoke the cancellation provisions of this Policy,
3. failure to comply with (c) above entitles the Company to invoke the cancellation provisions of this Policy with respect to any additional coverage which is subject to such additional premium charge.

Payment(s) of premium(s) when due shall be made to:

Aon (Bermuda) Ltd.
Aon House
30 Woodbourne Avenue
Pembroke, HM 08
Bermuda

All other terms and conditions of this Policy remain unchanged.

**Authorized Representative**

Date of Issuance: June 14, 2012

103280(11/09)

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**CHARTIS EXCESS LIMITED**
Head Office: 30 North Wall Quay, Dublin 1 Ireland
Branch Office, Bermuda - 29 Richmond Road, Pembroke, HM08
Branch Office, U.K. - 58 Fenchurch Street, London, EC3M 4AB

Chartis Excess Limited is incorporated and registered in The Republic of Ireland, Registration No. 279452, and is regulated by The Central Bank of Ireland.

© Chartis, Inc. All rights reserved.