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**Insured:** INTERNATIONAL BUSINESS MACHINES CORPORATION  
**Policy No:** XLUMB-00704  
**Endorsement No:** 11  
**Effective Date:** MAY 21, 1997

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**CHANGE OF LIMIT, RETENTION AND/OR RETROACTIVE COVERAGE DATE ENDORSEMENT CONT'D.**

the Declarations shall apply with respect to the entire Annual Period, and if such limit is increased or decreased by this Endorsement, the aggregate limits within the Annual Period shall not be cumulative and the lower limit shall be included within the higher limit, i.e., the Occurrences of which notice was first given during the portion of the period in which the lower limit was in effect shall be subject to such limit, and additionally all Occurrences of which notice was first given during the entire Annual Period shall be subject to the higher limit.

4. The Company in its discretion may permit the Named Insured to purchase as of the Effective Date Coverage B in accordance with Schedule D based on the last Annual Period premium (and prorated for the balance of an Annual Period if the Effective Date is in the middle thereof) in respect of any layer for which coverage is discontinued pursuant to this Endorsement; provided, however, that notwithstanding any other provision of the Policy or this Endorsement, all Occurrences under Coverage A and Coverage B combined shall be subject to the Annual Period aggregate limit stated in Item 2(b) of the Declarations (as amended herein, if applicable, and, in such case, in accordance with Paragraph 3 above; e.g., if the Named Insured changes Coverage A from $50 million per Occurrence and in the aggregate excess of $50 million to $50 million per Occurrence excess of $75 million and buys Coverage B with respect to the layer $25 million excess of $50 million, then, unless the aggregate limit in Item 2(b) of the Declarations is increased at the same time, a subsequent Occurrence for which coverage is available under both Coverages A and B would nonetheless be subject to the $50 million aggregate limit notwithstanding that $75 million per Occurrence coverage nominally would apply.

Ref: XS4-126.01  
Cont’d...