**Insured:** INTERNATIONAL BUSINESS MACHINES CORPORATION  
**Policy No.:** XLUMB-00704  
**Endorsement No.:** 16  
**Effective Date:** MAY 21, 1997  

---

**REINSTATEMENT PREMIUM AMENDMENT ENDORSEMENT**

Subparagraph 2(c) of Condition VI.R is deleted, and the following shall be substituted therefor:

**(c)** The Reinstatement premium shall be one hundred twenty five percent (125%) of the total premium for the Annual Period in which the reinstatement takes place. If there is no notice of any Occurrence subsequent to the Reinstatement Date during the Annual Period in which a reinstatement is elected, or if there is a notice but during the portion of the Annual Period subsequent to the Reinstatement Date there is no payment of Ultimate Net Loss by the Company in respect thereof, then the Company will refund (without interest) eighty-five percent (85%) of the reinstatement premium in respect of such reinstatement at the end of such Annual Period; in the event that after such a refund the Company later is called upon to make any payment after the Annual Period in respect of any Occurrence which is the subject of a notice given during such Annual Period after the Reinstatement Date, such payment shall be reduced by the amount of the premium so refunded (without interest).

All other terms and conditions of the Policy remain unchanged.

---

**X.L. INSURANCE COMPANY, LTD.**

By: **LYLE MCCOY**

Title: **VICE PRESIDENT**

Date: **JUNE 30, 1997**

Ref: **XS4-147.01**

XL