**Form A.C.E. No. 005-3/96**
**Policy No. IBM-5103/5**

**A.C.E. Insurance Company, Ltd.**

**Producer:** J & H Intermediaries

**In favor of:** International Business Machines Corporation

**Address:** Old Orchard Road, Armonk, New York 10504, 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, 1997 prevailing time at the address of the Named Insured and in accordance with terms and conditions of the form(s) attached.

**PREMIUM:** $275,000

**IN WITNESS WHEREOF, this Policy has been made, entered into and executed by the undersigned in Hamilton, Bermuda this 10th day of October, 1997.**

**By:** Dennis W. J. Burton  
**Title:** Vice President - Excess Liability