**J & H Intermediaries**
a division of:
Johnson & Higgins (Bermuda) Limited
Victoria Hall
P.O. Box HM 68
Hamilton HM AX, Bermuda

**JOHNSON & HIGGINS Established 1845**

July 10, 1997

**Mr. James Conerty**
Manager, Risk Management Department
International Business Machines
Old Orchard Road
Mail Drop: 230
Armonk, New York 10504
USA

**Re:** X.L. Insurance Company Limited
Excess Liability - Policy No. XLUMB-00704

Dear Mr. Conerty:

We are pleased to enclose the following Endorsements for attachment to the aforementioned policy:

* **Endorsement 10 - Coverage "A" Extension and Incorporation of Schedules by Reference Endorsement:** This Endorsement evidences a premium of $575,000 for the extension of Coverage "A" and the incorporation of Schedules A & C for the May 21, 1997/1998 policy period.

* **Endorsement 11 - Change of Limit, Retention and/or Retroactive Coverage Date Endorsement:** This Endorsement amends the limits of liability to $175,000,000 xs $170,000,000 layer. It also evidences the Retroactive Coverage Dates of May 21, 1990 for the $75,000,000 xs $170,000,000 effective May 21, 1991 and May 21, 1986 for the $100,000,000 xs $245,000,000 effective May 21, 1997.

* **Endorsement 12 - Retroactive Coverage Endorsement (I):** This endorsement addresses coverage terms for the retroactive period for the layer $100M xs $245M.

Continued...

**T188POLICYWULEND10.SAM : KAB : 07/11/97-06:23 : 1/2**

**UNISON THE GLOBAL TEAM**