**J & H Intermediaries**
441 292 1552
a division of:
Johnson & Higgins (Bermuda) Limited
Victoria Hall
P.O. Box HM 68
Hamilton HM AX, Bermuda

**JOHNSON & HIGGINS Established 1845**

**February 24, 1997**

**Via Courier**

**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 XL's new XS-004 Policy Form along with the following 004 Endorsements:

**End. 1 - Prospective Policy Substitution Endorsement:**
This endorsement evidences the change from XL's XS-003 Excess Liability Indemnity Policy form to XL's New XS-004 Excess Liability Indemnity Policy form effective May 21, 1996.

**End. 2 - Incorporation of Schedules by Reference Endorsement:**
This endorsement evidences the incorporation of Schedules A and C dated April 3, 1996 and Schedule B dated October 29, 1996 into the above captioned policy effective May 21, 1996.

**End. 3 - Retroactive Coverage Endorsement (II):**
This endorsement evidences a Retroactive Coverage Date of May 21, 1990 for the layer $75,000,000 xs $170,000,000 effective May 21, 1991.

**End. 4 - Warranty of Underlying Insurance with Limited Drop-Down Endorsement:**
This endorsement evidences the limited drop-down cover available, effective May 21, 1996, under the above policy for all GL, AL, EL and products risks.

Continued...

T:UNPOLICYWWXLEND1-SAM : DTH : 02/19/97-17:07 / 1/2

UNISON
THE GLOBAL TEAM