**End.42-7/96**
Form 005
Page 2

3. Nothing herein shall affect the application of the Policy as excess of all underlying insurances; without limiting the foregoing, where separate underlying insurances apply in respect to a single Occurrence, this Policy shall be excess of the cumulative coverage thereunder as provided in Sections II.A(1) and VI.H of the Policy. 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.

4. This Endorsement applies to all Occurrences with respect to which notice of Occurrence or Claim is given to the Insurer on or after the Effective Date shown below notwithstanding that the event or conditions commenced or the Personal Injury or Property Damage took place in whole or in part prior to the Effective Date of this Endorsement.

Notwithstanding anything herein to the contrary, the Per Occurrence Retention Amount shall under no circumstances be less than US$100 million.

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. 6