# Allied World Assurance Company

**Endorsement No:** 13  
**This endorsement, effective:** May 21, 2008 (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:** C007539/002  
**Issued to:** International Business Machines Corporation  
**by:** Allied World Assurance Company, Ltd.

## AMENDATORY ENDORSEMENT

It is hereby understood and agreed that as of the effective date shown above Endorsement No. 3, "CANCELLATION ENDORSEMENT," is deleted in its entirety and replaced by the following:

## CANCELLATION ENDORSEMENT

In consideration of the premium charged, it is agreed that the following is added to this Policy, notwithstanding anything to the contrary in the Followed Policy:

### CANCELLATION CLAUSE

This Policy may be canceled by the first Named Insured listed in Item 1 of the Declarations by mailing or delivering written notice of cancellation to the Insurer at the address set forth in Item 10 of the Declarations or the Insured's authorized agent at the address set forth in Item 11 of the Declarations. This Policy may be canceled by or on behalf of the Insurer by delivering to the first Named Insured or by mailing to the first Named Insured, by registered, certified, or other first class mail, at the first Named Insured's address set forth in the Declarations, written notice stating when thereafter, not less than thirty (30) days in the event any premium is not paid when due, and not less than ninety (90) days in all other cases, cancellation shall be effective. Proof of mailing of such notice as aforesaid shall be sufficient proof of notice. It is agreed that the first Named Insured shall act on behalf of all Insureds with respect to giving and receiving notice of cancellation. The Policy Period terminates at the date and hour specified in such notice, or at the date and time of surrender.

If this Policy shall be canceled by the first Named Insured, the Insurer shall return ninety percent (90%) of the unearned pro rata premium stated in Item 9. of the Declarations.

If this Policy shall be canceled by the Insurer, the Insurer shall return the unearned pro rata premium stated in Item 9. of the Declarations.

Payment or tender of any unearned premium by the Insurer shall not be a condition precedent to the effectiveness of cancellation but such payment shall be made as soon as practicable. All other terms and conditions of this Policy remain unchanged.

Ref: ACFF-MANUSCRIPT  
Page 1 of 2