**Insured:** International Business Machines Corporation  
**Policy No.:** UFP0044276-00  
**Endorsement No.:** 4  
**Effective Date:** May 21, 2011  

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**PREMIUM PAYMENT CONDITION**

Notwithstanding anything to the contrary contained in this Policy, it is a requirement of this Policy that:

(a) the premium is to be received by the Company no later than thirty (30) days after the inception date,

(b) any installment premium is to be received by the Company no later than thirty (30) days after the effective date of such installment premium,

(c) any other additional premium is to be received by the Company no later than thirty (30) days after the effective date applicable to such additional premium, or as may otherwise be agreed by the Company.

In consideration of the foregoing:

1. failure to comply with (a) above entitles the Company to refuse to be bound by this contract of insurance,
2. failure to comply with (b) above entitles the Company to invoke the cancellation provisions of this Policy,
3. failure to comply with (c) above entitles the Company to invoke the cancellation provisions of this Policy with respect to any additional coverage which is subject to such additional premium charge.

Payment(s) of premium(s) when due shall be made to the Insured’s Representative shown in Item 10 of the Declarations.

All other terms and conditions of this Policy remain unchanged.

Arch Reinsurance Ltd.

By:  
Title: Senior Vice President  
Underwriting Manager, Excess Casualty

Date: June 15, 2011  
Ref: BSF-4003 Ed. 09/08

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