**PREMIUM DISCOUNT ENDORSEMENT - NEW YORK**

**POLICY NO:** 8448300  
**EFFECTIVE DATE:** DEC. 31, 1963

**Named Insured:** INTERNATIONAL BUSINESS MACHINES CORPORATION, ETAL

This endorsement is issued by that company named below which is the insurer under the policy designated above issued to the Named Insured and forms a part of said policy as of the effective date hereof, at the hour stated in the policy Declarations.

It is agreed that the premium pertaining to New York for Liability, Medical Payments and Elevator Collision insurance is subject to discount in accordance with the following procedure:

1. **New York Standard Premium:** Such premium pertaining to New York computed in accordance with the provisions of the policies designated in paragraph 3 hereof, other than this endorsement and exclusive of the application of any retrospective rating plan, shall be known as the New York Standard Premium.
2. **Total Standard Premium for All States:** The Liability, Medical Payments and Elevator Collision premium computed in accordance with the provisions of the policies designated in paragraph 3 hereof, other than this endorsement and exclusive of the application of any retrospective rating plan, any Automatic Premium Adjustment Endorsement, any Premium Return Plan Endorsement, or other Premium Discount Endorsement, shall be known as the Total Standard Premium.
3. **Policy Numbers:** Estimated Annual Standard Premium
   - 8448300: 158,517.61
   - Total: 158,517.61

4. **Premium Discount – New York**
   (a) The initial premium discount percentage applicable to New York Standard Premium is as follows:
      - General Liability: 11%
      - Automobile Liability Garages: 11%
      - Taxis, Livery, Buses and Long Haul Truckmen: 11%
      - All Other Automobile Liability: 11%
   The final premium discount percentage applicable to New York Standard Premium shall be subject to paragraphs (b), (c), (d) and (e) following.
   (b) For policy periods of one year or less — The New York Standard Premium, exclusive of any premium subject to any retrospective rating plan, shall be subject to the applicable discount percentages for the Total Standard Premium obtained from the Table of Premium Discounts.
   (c) For policy periods of more than one year — The New York Standard Premium, exclusive of any premium subject to any retrospective rating plan, shall be subject to the applicable discount percentages stated in said Table of Premium Discounts opposite the average annual total standard premium for the policies which shall be determined by dividing the Total Standard Premium for the General Liability policy period by the term of said General Liability policies in years and fractions thereof and adding thereto each year's respective automobile liability standard premiums.
   (d) If retrospective rating is applicable to a part of the premium pertaining to New York, the amount of premium discount applicable to the New York Standard Premium, exclusive of any premium subject to any retrospective rating plan, shall be the difference between (1) the discount determined by applying to the New York Standard Premium the applicable percentages stated in said Table opposite the Total Standard Premium and (2) the discount determined by applying to the portion of the New York Standard Premium which is subject to retrospective rating the applicable percentages stated in said Table opposite so much of the Total Standard Premium as is subject to retrospective rating.
   (e) The provisions of this endorsement shall not apply in the event the New York Standard Premium is $100 or less and in no event shall the application of the provisions of this endorsement result in an earned premium of less than $100 as applicable to New York.

(Continued on reverse side)

**ZURICH INSURANCE COMPANY**
**AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY**

**Countersigned:** [Signature]
**Duly authorized:** [Signature] ATTORNEY IN FACT

**Form 4026-E. 6M, 11-59**

**Johnson & Higgins**
**McLo**

**Z 006864**