# DIRECT ACTION EXPENSES

| Named Insured | International Business Machines Corporation |
|---------------|-------------------------------------------|
| Policy Symbol | HDO                                       |
| Policy Number | G72490587                                 |
| Policy Period | 05/21/2021 TO 05/21/2022                   |
| Endorsement Number | 6                                         |
| Effective Date of Endorsement | -                                          |
| Issued By (Name of Insurance Company) | ACE American Insurance Company              |

**THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.**

This endorsement modifies insurance provided under the following:

- COMMERCIAL GENERAL LIABILITY COVERAGE FORM
- PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORM
- OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE FORM
- RAILROAD PROTECTIVE LIABILITY COVERAGE FORM
- LIQUOR LIABILITY COVERAGE FORM
- BUSINESS AUTO COVERAGE FORM
- MOTOR CARRIER COVERAGE FORM
- AUTO DEALERS COVERAGE FORM

The following is added to the SUPPLEMENTARY PAYMENTS provision of the policy and any endorsement attached to the policy which modifies or amends the SUPPLEMENTARY PAYMENTS provision of the policy:

In addition, we will pay for all reasonable "Direct Action Expenses".

As used in this endorsement, "Direct Action Expenses" means all defense, investigation, settlement, legal costs and expenses, and prejudgment interest, that we incur and that arise out of or relate to any "suit", seeking payment of damages under this policy, which "suit" is brought or made directly against us pursuant to any law that grants a third party the right to bring a direct action against us by virtue of the issuance of this policy. "Direct Action Expenses" also include expenses related to any appeal from a judgment.

Direct Action Expenses do not include any such expenses that we incur if we are sued because of the entry of a default judgment against an insured, if that default judgment was entered solely due to our mistake in the handling of the initial "suit" and the insured provided us with timely notice of that "suit".

All other terms and conditions remain unchanged.

Authorized Representative

ALL-44289c (11/16)
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