This endorsement effective on May 21, 1995 at 12:01 A.M. standard time

Forms part of Policy Number: NEA 0109021

Issued to: International Business Machines Corporation

By: Reliance Insurance Company

**COMMERCIAL EXCESS**

**POLLUTION EXCLUSION WITH EXCEPTION FOR LIMITED HOSTILE FIRE ENDORSEMENT**

**NOTICE: THESE POLICY FORMS AND THE APPLICABLE RATES ARE EXEMPT FROM THE FILING REQUIREMENTS OF THE NEW YORK STATE INSURANCE DEPARTMENT. HOWEVER, SUCH FORMS AND RATES MUST MEET THE MINIMUM STANDARDS OF THE NEW YORK INSURANCE LAW AND REGULATIONS.**

In consideration of the premium paid, it is understood and agreed that section VII., EXCLUSIONS, subsection A., is deleted and replaced as follows:

A. any personal injury, bodily injury, or property damage arising directly or indirectly out of or in connection with the discharge, dispersal, release, escape, or seepage of oil, petroleum substances or derivatives (including any oil, refuse, or oil mixed with wastes), smoke, vapors, soot, fumes, acid, alkalis, toxic chemicals, liquids, gases, waste materials, or others irritants, contaminants, or pollutants into or upon land, the atmosphere, or any watercourse, body of water, bog, marsh, swamp, or wetland and including but not limited to hazardous substances in the ground water, the subsol, or anything contained therein.

This exclusion shall also apply to any personal injury, bodily injury, or property damage arising from any loss, cost, or expense incurred in testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing pollutants in connection with anything contained in the preceding paragraph.

It is further understood and agreed that the first paragraph of this exclusion shall not apply to any liability caused by heat, smoke, or fumes from Hostile Fire if such Hostile Fire does not arise out of the handling, storage, transportation, disposal, processing, or treatment of waste or out of the testing for, monitoring, clean up, removing, containing, treating, detoxifying, or neutralizing of pollutants.

As used in this exclusion, Hostile Fire means a fire which becomes uncontrollable or breaks out from where it was intended to be.

The extension of coverage provided by this endorsement shall not apply except insofar as such coverage is available to the Insured in all Underlying Insurance for the full limits of liability of such Underlying Insurance, and then only for the hazards for which coverage provided therein is identical to or broader than the coverage provided by this endorsement.

Insured's Signature

All other terms and conditions of this policy remain unchanged.