**Insured:** International Business Machines Corp.

**Policy No.:** UFP0021773-00

**Endorsement No.:** 3

**Effective Date:** May 21, 2007

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**SEVERAL LIABILITY FOR QUOTA SHARE COVERAGE ENDORSEMENT**

In consideration of the premium charged, it is agreed that the Company's liability for Ultimate Net Loss under this Policy is solely for its proportionate or quota share of the applicable limits of liability as set forth in Item 5 of the Declarations. Further, the Company's liability is several and not joint, and, in no event shall the Company be liable for the proportionate or quota share of any other insurer or entity participating on the same layer of coverage as this Policy.

All other terms and conditions of this Policy remain unchanged.

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**Arch Reinsurance Ltd.**

By: [Signature]

Title: Senior Vice President  
Underwriting Manager  
Excess Casualty  

Date: September 6, 2007  
Ref: OCXS 4002 Ed. 4/1/02

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**Arch Reinsurance Ltd.**