This endorsement modifies such insurance as is afforded by the provisions of the policy relating to the following:

| POLICY NO | EFFECTIVE DATE | AGENCY NO. | ADD'L PREMIUM | RETURN PREMIUM |
|-----------|----------------|------------|---------------|----------------|
| 85-70-500 | JAN.17, 1968   | 50-515-000 | $             | $             |

Named Insured: INTERNATIONAL BUSINESS MACHINES CORP., ET AL.

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

**INSURING AGREEMENTS (CONT'D)**

**(2) LIMITS OF LIABILITY**

THE COMPANY'S TOTAL LIMIT OF LIABILITY SHALL NOT EXCEED THE AMOUNT STATED IN ITEM 2(A) OF THE DECLARATIONS ON ACCOUNT OF ONE OCCURRENCE AND THEN ONLY AFTER THE INSURED SHALL HAVE BORNE, FOR HIS OWN RETENTION, THE AMOUNT DESIGNATED IN ITEM 2(B) OF THE DECLARATIONS. SHOULD THE TOTAL AMOUNT OF LOSS NOT EXCEED SUCH RETAINED AMOUNT, NO LIABILITY SHALL ATTACH TO THE COMPANY WITH RESPECT TO THE OBLIGATIONS INCORPORATED HEREUNDER, REGARDLESS OF THE NUMBER OF CLAIMANTS, ALL DAMAGES ARISING OUT OF A SINGLE ERROR OR WRONGFUL ACT OR SERIES OF RELATED ERRORS OR WRONGFUL ACTS SHALL BE DEEMED THE RESULT OF A SINGLE OCCURRENCE. THE TOTAL LIABILITY OF THE COMPANY FOR ALL CLAIMS AS A RESULT OF OCCURRENCES DURING THE ENDORSEMENT PERIOD SHALL NOT EXCEED THE LIMIT STATED IN THE DECLARATIONS AS "AGGREGATE LIMIT."

**(3) ENDORSEMENT PERIOD AND TERRITORY.**

THIS INSURANCE APPLIES ONLY TO OCCURRENCES WHICH HAPPEN DURING THE ENDORSEMENT PERIOD, ANYWHERE IN THE WORLD.

**EXCLUSIONS**

THIS ENDORSEMENT DOES NOT APPLY:

1. TO ANY DISHONEST, FRAUDULENT, CRIMINAL OR MALICIOUS ACT OR OMISSION OF THE INSURED OR OF ANY EMPLOYEE OF THE INSURED;
2. TO LIBEL OR SLANDER OR DEFAMATION OF CHARACTER;
3. TO LIABILITY FOR LOSS OR DAMAGE TO PROPERTY OF OTHERS IN THE CARE, CUSTODY OR CONTROL OF THE INSURED;
4. TO PERSONAL OR BODILY INJURY TO OR SICKNESS, DISEASE OR DEATH OF ANY PERSON, OR TO INJURY TO OR DESTRUCTION OF ANY TANGIBLE PROPERTY, INCLUDING LOSS OF USE THEREOF;
5. TO LIABILITY FOR ANY LOSS CAUSED INTENTIONALLY BY OR AT THE DIRECTION OF THE INSURED.

ZURICH INSURANCE COMPANY
AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY

Countersigned: **Victor P. Nigro**
Duly authorized agent

(For use with policy series 950 and 7050)

Form 117 50M 3-67

United States Manager (Zurich)
President American Guarantees

Secretary (American Guarantees)

Z 007011