**Form XL XS-004**
**Policy No. XLUMB-00704**

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

**Producer:** J & H INTERMEDIARIES

**In favor of:** INTERNATIONAL BUSINESS MACHINES CORPORATION

**Address:** OLD ORCHARD ROAD  
NEW YORK  
NEW YORK  
USA

**Type of Coverage:** EXCESS LIABILITY INDEMNITY POLICY

*In the amount as stated in Item 2 of the Declarations.*

**Term:** Beginning at 12:01 A.M. on the 21ST day of MAY, 1990 with retroactive coverage, if applicable, from 12:01 A.M. on the *day of *, 19 *, in each case, prevailing time at the address of the Named Insured and in accordance with terms and conditions of the form(s) attached.

**PERIOD:** MAY 21, 1996 - MAY 21, 1997

**PREMIUM:** $425,000

**IN WITNESS WHEREOF,** this Policy has been made, entered into and executed by the undersigned in Hamilton, Bermuda this 17TH day of DECEMBER, 1996.

*All other coverages but pollution have a retroactive date of May 21, 1990. Pollution cover only with a retroactive date of May 15, 1990.*

**By:**  
**LYLE-MCCOY**

**Title:** VICE PRESIDENT

XS004 1/96