# ENDORSEMENT #2

This endorsement, effective May 21, 2016 (at 12:01 a.m. Prevailing Time at the address shown in Item 1 of the Declarations), forms a part of Policy No. 60703940 issued to International Business Machines Corporation by American International Reinsurance Company, Ltd.

## 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:

Aon (Bermuda) Ltd.
Aon House
30 Woodbourne Avenue
Pembroke, HM 08
Bermuda

All other terms and conditions of this Policy remain unchanged.

**Authorized Representative**

---

103280(11/09)

Page 1 of 1

AMERICAN INTERNATIONAL REINSURANCE COMPANY, LTD.
27 Richmond Road
Pembroke, HM08
Bermuda
© All rights reserved.