# Gerling Global Reinsurance Corporation, U.S. Branch

**717 Fifth Avenue, New York, New York 10022**

**ENDORSEMENT NO. 1**
**CERTIFICATE NO. 71-22783**
**DATE: August 1, 1980**

It is hereby understood and agreed that this Certificate is amended as follows:

In consideration of the premium charged, it is agreed that Item 20 of this certificate is amended to read as follows:

The Company shall notify the Reinsurer promptly, in writing, of any situation wherein the Company may become obligated to pay as damages either by judgement or agreement, due to the alleged or actual bad faith, fraud, or negligence of the Company, its employees or representatives, in the handling of, or failure to settle a claim on behalf of or by the named insured under its policy(ies), or for the costs or expense incurred therefrom. The Reinsurer shall have the right and shall be given the opportunity, with the full cooperation of the Company, to associate counsel, at its own expense, and to join with the Company and its representatives in the defense and control of any claim, suit or proceeding involving this item.

All other terms and conditions remain unchanged.

1) 9910310
1) National Union Fire
2) CE 3640492
2) American Home Assurance Co.
Insurance Co.
of
Ins. Co. of Pitts.

Attached to and forming part of Reinsurance Certificate to Policy No.
Effective 5/21/80
Original Insured International Business Machines Corp., etal

In Witness Whereof, the Reinsurer has caused this endorsement to be signed by its authorized representative.

GERLING GLOBAL OFFICES INC.
U.S. Manager
Authorized Signature