# Amended Defense and Supplementary Payments

**Endorsement # 03**

**ZURICH**

| Policy No. | Eff. Date of Pol. | Exp. Date of Pol. | Eff. Date of End. | Producer | Add'l Prem. | Return Prem. |
|------------|-------------------|------------------|------------------|----------|-------------|--------------|
| AEC 5574320-02 | 05/21/2015 | 05/21/2016 | 05/21/2015 | 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

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

**SECTION III. DEFENSE AND SUPPLEMENTARY PAYMENTS is deleted and replaced by the following:**

**SECTION III. DEFENSE AND SUPPLEMENTARY PAYMENTS**

**A.** We 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 when the Total Limits Of All Underlying Insurance shown in Item 6. of the Declarations are exhausted solely by payment of loss for which coverage is afforded under this policy.

**B.** In those circumstances where paragraph A. above applies, in addition to the applicable Limits of Insurance, we will pay our expenses and the following to the extent that they are not included in Underlying Insurance:

1. Up to $2,000 for the cost of bail bonds. We do not have to furnish these bonds;
2. The cost of bonds to release attachments, but only for bond amounts within the amount of insurance available. We do not have to furnish these bonds;
3. Reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or suit, including actual loss of earnings because of time off from work;
4. Costs taxed against the insured in the suit;
5. Pre-judgment interest awarded against the insured on that part of the judgment we pay. However, if we make an offer to pay the applicable Limit of Insurance, we will not pay any pre-judgment interest based on that period of time after the offer; and
6. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court that part of the judgment that is within the applicable Limits of Insurance.

We will not investigate and settle any claim, or defend any suit after we have exhausted the applicable Limit of Insurance as shown in Item 4. of the Declarations.

If we are prevented by law from carrying out the provisions of Section III. Paragraph A. above, we will pay any expense incurred with our consent.

**ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.**

Includes copyrighted material of Insurance Services Office, Inc., with its permission.