**Policy No.** IBM-5103/5

**Date:** 10th October, 1997

**EXCESS LIABILITY INDEMNITY POLICY**

**INSURANCE DECLARATIONS**

| Item | Description |
|------|-------------|
| 1 (a) | Named Insured: International Business Machines Corporation |
|       | (b) Address of Named Insured: Old Orchard Road, Armonk, New York 10504, USA |

| Item | Limits of Liability: |
|------|---------------------|
| 2 (a) | Per Occurrence $100,000,000 |
|       | (b) Annual Aggregate $100,000,000 |
|       | (c) Integrated Occurrence Sublimit $100,000,000 |

| Item | Retention: Per Occurrence |
|------|----------------------------|
| 3     | See Per Occurrence Retention Schedule |

| Item | Policy Inception Date: |
|------|------------------------|
| 4     | 1st November, 1985 and Policy Form Substitution Endorsement No. 1 |

| Item | First Annual Period Expiration Date: |
|------|---------------------------------------|
| 5     | 21st May, 1998 |
|       | *At 12:01 A.M. at the address of the Named Insured listed in Item 1(b) above. |

| Item | Representative of Named Insured: |
|------|-----------------------------------|
| 6     | J & H Intermediaries |

| Item | Currency: United States Dollars |
|------|----------------------------------|

| Item | Premium: $275,000 |
|------|--------------------|

| Item | The Insurer: A.C.E. Insurance Company, Ltd. |
|------|--------------------------------------------|

| (a) | All Notices of Occurrence: |
|     | Claims Department |
|     | A.C.E. Insurance Company, Ltd. |
|     | The ACE Building |
|     | 30 Woodbourne Avenue |
|     | Hamilton HM 08, BERMUDA |
|     | Telecopier: (441) 292-2456 |

| (b) | All other Notices: |
|     | Underwriting Department |
|     | A.C.E. Insurance Company, Ltd. |
|     | The ACE Building |
|     | 30 Woodbourne Avenue |
|     | Hamilton HM 08, BERMUDA |
|     | Telecopier: (441) 295-5221 |

| Item | Application Date: |
|------|--------------------|
| 9     | 21st April, 1997 |