**End.42-7/96**
**Form 005**

**A. ADDITIONAL/RETURN PREMIUM: $NIL**

**PER OCCURRENCE RETENTION SCHEDULE**
(Item 3 of the Declarations)

1. With respect to the perils described below, it is agreed that the Per Occurrence Retention Amount set forth in Item 3 of the Declarations shall be amended to be the amounts respectively set forth with respect thereto:

   **PERIL (S):** AMENDED PER OCCURRENCE RETENTION AMOUNT (S):
   
   - All perils except those listed below: $345,000,000
   - Pollution: $200,000,000

If Damages arise out of operations or the existence of a Joint Venture, the Per Occurrence Retention Amount in Item 3 of the Declarations with respect to such Damages shall equal the greater of US$100 million or the product of the Per Occurrence Retention Amount for the applicable risk listed above and the percentage interest of the Insured in the liability of the Joint Venture for such Damages. All other Declarations, provisions, stipulations, exclusions and conditions of the Policy shall remain in effect.

If any amount listed above is less than the Per Occurrence Retention Amount previously in effect, then the Inception Date as respects the coverage afforded by such decrease shall (i) for the purposes of Section III.V and IV.A, be the Inception Date set forth in Item 4 of the Declarations, and (ii) for all other purposes, including without limitation, Section III.M., be the Effective Date of this Endorsement.

2. If Ultimate Net Loss in respect of any one Occurrence is attributable to two or more specific perils, the portions of such Ultimate Net Loss attributable to any two or more of the above referenced perils may be combined at the option of the Named Insured, and the highest Amended Per Occurrence Retention Amount listed above for any of such combined perils shall apply to such combined Ultimate Net Loss. As respects Ultimate Net Loss for any peril not included in such combination, the Amended Per Occurrence Retention Amount listed above with respect thereto shall separately apply.

**cont'd.....**

The effective date of this endorsement is:
All other terms and conditions remain unchanged.
This endorsement is attached to and made a part of Policy No.:
of A.C.E. INSURANCE COMPANY, LTD.

Issued to:
Date of Issue:
By
Authorized Representative

End No. 2 cont'd.