**Endorsement #1 Page 5**

**Policy No.:** 8906923  
**Eff. Date of Pol.:** 5-21-79  
**Eff. Date of End.:** 5-21-79  
**Agency No.:** 50-516-810  
**Add'l Premium:** $  
**Return Premium:** $  

**Named Insured:** INTERNATIONAL BUSINESS MACHINES CORP.

This endorsement is issued by the company named above, which is the insurer under the policy designated above, and forms a part of said policy as of the effective date hereof, at the hour stated in the policy Declarations.

**FIRST:** Any interest (including the insured) that shall have paid an amount over and above any payment made under this policy shall be reimbursed up to the amount paid by such interest; **SECOND:** The company shall be reimbursed out of the balance then remaining, up to the amount paid under this policy. **THIRD:** The insured is entitled to the residue. The expense of all proceedings necessary to the recovery of any such amount shall be apportioned between the interests concerned (including the insured) in the ratio of their respective recoveries as finally settled. If there should be no recovery in proceedings instituted solely on the initiative of the company, the expense thereof shall be borne by the company.

**CANCELLATION:**

It is agreed that notwithstanding anything to the contrary contained in the policy, if the company elects to cancel this policy, the company will mail to the named insured by the address shown in the policy, written notice stating that not less than sixty (60) days thereafter, such cancellation shall be effective.

**SPORTS ACTIVITIES:**

Such insurance as is afforded by the policy applies without additional premium charge with respect to the participation of the insured's employees in athletic activities, sports or social events under the sponsorship supervision or control of the insured under the insured's name and with the insured's consent wherever such activities may take place.

**JOHNSON & HIGGINS**  
**BG: NK 8-23-79**

**ZURICH INSURANCE COMPANY**  
**AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY**

Countersigned:  
Authorized Agent

U-GU-116-G REV. 11-76

MM 009593