**End.6-2/96**
**Form 005**

**ADDITIONAL/RETURN PREMIUM:** $ ,000

**ANNIVERSARY ENDORSEMENT**

It is agreed and acknowledged that in consideration of the payment by the Named Insured of the following premium, Coverage A of the Policy is extended for the period set forth below:

**Premium:**

| Current Payment | $190,000 |
|-----------------|----------|
| Unearned Premium Credit | $ - 0 - |
| Total Premium | $190,000 |

**Extension Period:** from 12:01 A.M. May 21, 1998 to 12:01 A.M. May 21, 1999

(in each case at the address of the Named Insured listed in Item 1(b) of the Declarations)

It is further agreed and acknowledged that (i) if different, the Per Occurrence Retention Amount set forth in Item 3 of the Declarations is amended in accordance with the Changed Per Occurrence Retention Schedule effective as of the effective date of this endorsement, and (ii) the Limits of Liability amount set forth in Item 2(a), (b) and (c) of the Declarations shall be

(a) Per Occurrence: $100,000,000

(b) Annual Aggregate: $100,000,000

(c) Integrated Occurrence Sublimit: $100,000,000

As respects the decremental amount of any decreased retention and/or the incremental amount of any increased limit, the Inception Date shall be the Effective Date of this Endorsement.

It is agreed and acknowledged that the only purpose of Schedule B is to set forth the underlying insurance for the application of subparagraph (a) of paragraph (1) of Section II.A of the Policy, and nothing contained in Schedule B shall affect application of any other provision of the Policy.

Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, conditions, exclusions or limitations of the Policy referenced below, except as expressly stated herein.

The effective date of this endorsement is 21st May, 1998 All other terms and conditions remain unchanged.
This endorsement is attached to and made a part of Policy No. IBM – 5103/5 of A.C.E. INSURANCE COMPANY, LTD.

Issued to: INTERNATIONAL BUSINESS MACHINES CORPORATION
Date of Issue: 21st January, 1999
By ___________________________
Authorized Representatives
End No. 5