# NON-PREMIUM ENDORSEMENT

| Date Prepared | Endorsement No. |
|---------------|-----------------|
| 06-03-93 a.m. | 6               |

**Issued By**

- The Home Insurance Company
- City Insurance Company
- The Home Indemnity Company
- The Home Insurance Company of Indiana

**Policy Number | Certificate Number | Named Insured**
|---------------|--------------------|-------------------|
| HXLF 865311   |                    | International Business Machine Corp.

**Producer**
- Johnson & Higgins
- Producer No. - OPC
- 50138-081

**Inception (Month-Day-Year) | Expiration (Month-Day-Year) | Effective Date & Time of Endorsement**
| 05-21-93         | 05-21-94           | 05-21-93

**It is agreed that this policy is hereby amended as indicated. All other terms and conditions of this policy remain unchanged.**

**ALTERNATIVE DEFINITIONS OF ULTIMATE NET LOSS. LIMITS OF LIABILITY TO BE REDUCED BY COST OF LEGAL DEFENSE WHERE UNDERLYING INSURANCE IS REDUCED BY COST OF LEGAL DEFENSE**

In consideration of the premium paid, it is hereby mutually understood and agreed that the Definition of "Ultimate Net Loss" contained in the policy is hereby deleted and the following substituted in its place:

a) Where the underlying insurance provides that the limits of liability shall be reduced by expenses, including expenses incurred by or on behalf of the Insured in the investigation, negotiation, settlement and defense of any claim, the limits of liability of this policy shall also be reduced by the Company's payment of such expenses, and the term "Ultimate Net Loss" shall mean:

The amount the Company becomes obligated to pay in DEFENSE and INDEMNITY in the settlement of the liability of the Insured after making deductions for all recoveries and for other valid and collectible insurance excepting however the policy(ies) of the Underlying Insurer(s).

Ultimate Net Loss SHALL INCLUDE DEFENSE COSTS PAYABLE IN THE SETTLEMENT OF THE LIABILITY OF THE INSURED. Ultimate Net Loss shall exclude all interest accruing after entry of judgment, except with the consent of the Company.

It is further agreed that condition 4, Defense, of this policy is hereby deleted and replaced by the following:

The Company shall not be required to assume charge of the investigation, settlement or defense of any claim made, or suits

**Signature of Authorized Representative**
H22300 FH (W.S.) Rev. 11/81