# New York Changes

| Policy No. | Eff. Date of Pol. | Exp. Date of Pol. | Eff. Date of End. | Producer | Add'l Prem. | Return Prem. |
|-----------|------------------|------------------|------------------|----------|-------------|--------------|
| AEC 5574320-00 | 05/21/2013 | 05/21/2014 | 05/21/2013 | 50522000 | ---------- | ---------- |

**Named Insured and Mailing Address:**

INTERNATIONAL BUSINESS MACHINES CORPORATION  
1 New Orchard Rd  
Armonk, NY 10504  

**Producer:**

AON RISK SERVICES NORTHEAST INC.  
199 WATER ST FL 32ND  
NEW YORK, NY 10038-3526  

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

**A. SECTION I. COVERAGE**, is amended to include the following:

Notwithstanding anything to the contrary in this policy, the insurance coverage afforded by this policy as respects operations in New York State shall conform to the requirements of the applicable New York State Insurance Laws and the applicable New York State Insurance Department Regulations. However, the Limits of Insurance stated in this policy shall apply in excess of the Limits of Insurance of any underlying insurance or self-insurance shown in the Schedule of Underlying Insurance.

**B. SECTION III. DEFENSE AND SUPPLEMENTARY PAYMENTS**, is deleted and replaced with the following:

**SECTION III. DEFENSE AND SUPPLEMENTARY PAYMENTS.**

**A.** We will have the right and duty to assume control of the investigation and settlement of any claim or defense of any suit against the insured for damages covered by this policy, even if the allegations of the suit are groundless, false or fraudulent, when the applicable Total Limits Of All Underlying Insurance shown in Item 6. of the Declarations have been exhausted solely by payment of claims or suits for which coverage is afforded under this policy.

**B.** When we have no duty to defend, we will have the right to participate in the investigation and settlement of any claim or defense of any suit that we feel may create liability on our part under the terms of this policy. If we exercise this right we will do so at our expense.

**C.** We will pay, with respect to any suit we defend against an insured:

1. All expenses we incur;
2. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable Limits of Insurance, we will not pay any prejudgment interest based on that period of time after the offer; and
3. All interest on that part of a judgment, to which this insurance applies, that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable Limits of Insurance.

Our expenses and payments as described in this paragraph will not reduce the Limits of Insurance.

**C.** The following condition is added to **SECTION V. CONDITIONS**:

**Transfer of Duties When a Limit of Insurance is Used Up**

1. If we conclude that, based on occurrences, offenses, claims or suits which have been reported to us and to which this insurance may apply, an applicable Limit of Insurance for this policy is likely to be used up in the payment of judgments or settlements, we will notify the first named insured, in writing, to that effect.
2. When a Limit of Insurance described above has actually been used up in the payment of judgments or settlements: