# Endorsement No: 5[FF-04]

**This endorsement, effective:** May 21, 2009 (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:** 21472589

**Issued to:** International Business Machines Corporation

**by:** AIG Excess Liability Insurance International Limited

## PUNITIVE DAMAGES AMENDATORY ENDORSEMENT

It is hereby understood and agreed that in consideration of:

(i) the Insured's warranty that, as of the inception date of this Policy, the Insured has in place underlying insurance providing coverage for punitive damages in every jurisdiction in the United States that is applicable notwithstanding the law of any such jurisdiction that punitive damages are uninsurable, with limits of liability in an amount not less than the limits of underlying excess policies stated in Item 5 of the Declarations of this Policy; and

(ii) the Insured's agreement to maintain such punitive damages coverage in place during the policy period of this Policy;

punitive damages shall be insurable under this Policy regardless of whether punitive damages are uninsurable under the Followed Policy by reason of applicable law.

In the event that the Insured fails to comply with either (i) or (ii) above, this Policy shall only provide coverage for punitive damages in the event the Followed Policy is construed under applicable law to provide coverage for punitive damages.

All other terms and conditions of this Policy remain unchanged.

**Authorized Representative**

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Date of Issuance – June 22, 2009

FF-04 573.01 Standard (Ed. 12/06)

5[FF04]09 573.01 Punitive Damages Amendatory Endorsement