**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

**May 17, 1996**

**By courier**

**Mr. James Conerty**
Manager, Risk Management Department
INTERNATIONAL BUSINESS MACHINES
Old Orchard Road
Mail Drop: 230
Armonk, New York 10504
USA

Dear Mr. Conerty:

**RE:** EXCESS LIABILITY
XL POLICY NO. XLUMB-00704

I have enclosed the following endorsements to be attached to your policy:

**End. No. 25 - Warranty of Underlying Insurance with Limited Drop-Down Endorsement.** This Endorsement documents the limited drop-down cover available, effective May 21, 1994, under IBM's policy for all GL, AL, EL and products risks. XL's cover will not drop below $25,000,000.

**End. No. 26 - Warranty of Underlying Insurance with Limited Drop-Down Endorsement.** This Endorsement documents the limited drop-down cover available, effective May 21, 1995, under IBM's policy for all GL, AL, EL and products risks. As above, XL's cover will not drop down below $25,000,000.

Mr. Conerty, I trust you will find these endorsements to be in good order but please contact me at (441) 299-8814 should you have any questions.

**page 1/cont.**

UNISON
THE GLOBAL TEAM